You Are the CEO of a Home Appliance Manufacturing Company

Multiple Choice

You are the CEO of a home appliance manufacturing company and have recently undertaken a review of your company's strategy. In comparing your stock market valuation to that of your closest competitor, you note that your firm is currently valued at $50 billion, while your competitor is valued at $40 billion. How should you proceed?

A) Consider this evidence of a sustainable competitive advantage and maintain your current strategy.
B) Compare the current valuations with past valuations to determine a trend.
C) Assume your current strategy has failed and begin to formulate a new one.
D) Compare your valuation to firms in another industry.