A company follows a differentiation strategy but fails to justify its premium pricing. What is the likely outcome?

A budget hotel chain focuses on providing the lowest prices in the industry. However, customer reviews frequently mention issues with cleanliness and unfriendly service. Occupancy rates have started to decline despite their competitive pricing. What is the most likely cause of the decline in performance?

How can the manufacturer respond to these changing customer preferences while maintaining its competitive position?

Identify one driving force for at least four categories of the STEEPG framework.  Be specific about the driving force and state why it’s appropriate for the category you chose.

Match each scenario to the corresponding caveat (Parity Conditions, Evolution of Customer Expectations, or Evolution of Competition).

Non-financial performance dimensions, such as corporate reputation and employee engagement, do not contribute to overall business success.

A competitive environment where entry barriers are low, substitutes are widely available, buyers have moderate bargaining power, suppliers have strong leverage, and rivalry is moderate

What is the primary risk if the company fails to adapt to evolving customer preferences?

The market for smart sleep devices includes a range of companies offering AI-powered sleep tracking, biometric wearables, and smart mattresses. These firms compete with traditional sleep solutions such as prescription sleep aids, CPAP machines, and behavioral sleep therapy apps. Based on this information, how should the industry be defined?

Strategic effectiveness can only be measured using financial performance indicators.