Question

What change did the competitors make that affected Super Fine Rice Ltd.?

• A. Increased prices
• B. Reduced the quality
• C. Started selling rice on credit
• D. Started exporting rice

Hint:

Understanding competitors' strategies and adapting to market changes is key to maintaining a competitive edge.

Answer 1

The Correct Option is C

Step 1: Identifying the competitive change.
The case explains that the competitors of Super Fine Rice Ltd. started selling rice on credit, which posed a challenge to the company. This change in their business model led to a decline in Super Fine Rice Ltd.'s sales.
Step 2: Why this affected the company.
Super Fine Rice Ltd.'s cash-only policy became a disadvantage as customers were attracted to the credit sales offered by competitors.
Step 3: Conclusion.
The competitors’ decision to offer credit sales directly impacted Super Fine Rice Ltd., leading to a decline in market share.