Question

An entrepreneur is looking to open a restaurant in a town with only one other restaurant. The incumbent restaurant is very successful with high profits. Which of the following business strategies are most likely to allow the entrepreneur to start a profitable restaurant? Select all that apply. Offer the most popular dish served by the incumbent restaurant. Open the restaurant location near the incumbent restaurant. Use new technology and business practices to cut variable costs lower than the incumbent restaurant. Specialize in a type of cuisine not served by other restaurants in the region.

Answer 1

Answer:

Options C and D would be the correct options.

Explanation:

• The technological innovation will decrease costs and raise income, even though the other establishment launches a trade dispute, it seems to be profitable.  
• Specializing in some other quality of diet creates significant consumers and that could stick to something like a restaurant that will boost the product revenue and profit.
• Fining the least expensive could begin price competition and that it's necessary to play on quality to make costing fewer costly. The upscale steakhouse may have cheaper price capacities than that of the new ones. Specializing in almost the same product will boost rivalry, although with the old store, that the very first leading benefit is.  

Many alternatives have no relation to the given instance. Therefore the answer to the above seems to be the right one.