Explain the Strategy Examination Process That Took Place at CBI

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The Answer is For CBI, the strategy examination process has three activities:(1) Determine industry structure, (2) commit to a specific competitive strategy, and (3) develop objectives and measures for processes to support the competitive strategy.
CBI initiated its planning process by using Porter's Five Forces model to determine the structure of its industry.CBI determined that the bike wholesale industry has strong rivalry and that customers have low switching costs.Because of low switching costs, a bike retailer could easily switch from one bike maker to another.To survive and flourish in such an industry, CBI decided to pursue a competitive strategy that focused on high-end bikes and a differentiation strategy of responsiveness to retailers.The high-end bike industry segment includes very lightweight racing bikes and touring bikes with composite frames and sophisticated gear-shifting systems.Responsiveness means that orders from retailers are fulfilled rapidly; a retailer could order a wide range of products, and new hot-selling items would be available.While CBI pursues this competitive strategy, it also seeks to reduce its own internal costs, particularly in procurement and sales.

Explain the Strategy Examination Process That Took Place at CBI

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Explain the Strategy Examination Process That Took Place at CBI

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Correct Answer:
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