You are the CEO of a home appliance manufacturing company and have recently unde

Question

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

Explanation / Answer

The answer is given below:

Compare the current valuations with past valuations to determine a trend.

When the company find out as they are leading in the market from their competitors, they should first analyze on what made them to be more competitive, as that strategy helps them to sustain longer in the market.

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