Toy Sales Have Declined by 10 Percent Each Year, Forcing

Multiple Choice

Toy sales have declined by 10 percent each year, forcing many retailers to exit the industry. To eliminate its remaining competition, Bleaker Toys sells all of its product at a loss and relies on its significant cash holdings to cover costs until its competition is forced to exit the industry. Is this an example of a successful strategy? Why or why not?

A) Yes. Any strategy that forces competition from the market is by definition successful.
B) Yes. Bleaker has achieved a sustainable competitive advantage by selling its toys at a lower price than competitors.
C) No. Bleaker has failed to create value for its customers.
D) No. Bleaker's strategy and competitive advantage are unsustainable.