Question

Tiyona Motors plans to introduce a fast, stylish car to its fleet that management hopes will appeal to high-end buyers and grant Tiyona entry into the luxury market. Based on this scenario, what possible outcome should Tiyona be prepared for?
A) Other companies will run negative advertisements about their new car.
B) They will discover that they are the only company in this market.
C) The financial investment will be high, and the competition will be heavy.
D) The financial investment will be low, and the competition will be minimal.
E) The competition will be minimal, but the financial investment will be low.

Answer 1

Answer:

C

Explanation:

Since it is a deal on luxury cars, it is expected that the amount of money that will be allocated to start it by Tiyona motors would be high. Also, before Tiyona motors decided it would be running this kind of investment, there had been other players in the game. As a green horn in the luxury car business, it is expected that there would be a huge competition from pre-existing companies who have been in the game before Tiyona motors.

The above explanation is the reason why option C is the correct answer

Answer 2

Answer:

C. The financial investment will be high and the competition will be heavy.

Explanation:

In any market if you join the luxury market firstly you need to meet expectations of your target market which in this case Tiyona Motors must meet expectations of wealthy people where the new car must meet their lavish lifestyles so features and benefits that come with the car must be top class and that requires high investments to fulfill. Also at this market Tiyona Motors will also face heavy competition as they will be competing with non luxurious cars and also the luxury market cars in other companies with having to be required to surpass features of other cars in other companies to grab the attention of their target market.