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Sagot :
Certainly! Let's break down the profits associated with each combination of strategies that ABC Products and XYZ Foods can implement.
### Strategies Overview
ABC Products has two strategies:
1. Reduce the size of its packaging.
2. Increase its advertising.
XYZ Foods also has two strategies:
1. Issue coupons to customers.
2. Reduce the quality of its ingredients.
### Payoff Matrix
The profits (in thousands of dollars) for both ABC Products and XYZ Foods for each combination of strategies are presented in a payoff matrix:
[tex]\[ \begin{array}{|c|c|c|} \hline ABC \backslash XYZ & \text{Coupon} & \text{Reduce Quality} \\ \hline \text{Reduce size} & (\$10, \$60) & (\$50, \$50) \\ \hline \text{Advertise} & (\$20, \$40) & (\$40, \$20) \\ \hline \end{array} \][/tex]
To understand this matrix:
- (\[tex]$10, \$[/tex]60) indicates:
- ABC Products earns \[tex]$10,000. - XYZ Foods earns \$[/tex]60,000.
- This happens when ABC Products reduces the size of its packaging and XYZ Foods issues coupons.
- (\[tex]$50, \$[/tex]50) indicates:
- ABC Products earns \[tex]$50,000. - XYZ Foods earns \$[/tex]50,000.
- This happens when ABC Products reduces the size of its packaging and XYZ Foods reduces the quality of its ingredients.
- (\[tex]$20, \$[/tex]40) indicates:
- ABC Products earns \[tex]$20,000. - XYZ Foods earns \$[/tex]40,000.
- This happens when ABC Products advertises and XYZ Foods issues coupons.
- (\[tex]$40, \$[/tex]20) indicates:
- ABC Products earns \[tex]$40,000. - XYZ Foods earns \$[/tex]20,000.
- This happens when ABC Products advertises and XYZ Foods reduces the quality of its ingredients.
### Summary
Combining the profits associated with each combination of these strategies, the payoff matrix for both firms is:
- Reducing the size of packaging and issuing coupons: (\[tex]$10, \$[/tex]60)
- Reducing the size of packaging and reducing quality: (\[tex]$50, \$[/tex]50)
- Increasing advertising and issuing coupons: (\[tex]$20, \$[/tex]40)
- Increasing advertising and reducing quality: (\[tex]$40, \$[/tex]20)
This information encapsulates the strategic choices and potential outcomes for both ABC Products and XYZ Foods.
### Strategies Overview
ABC Products has two strategies:
1. Reduce the size of its packaging.
2. Increase its advertising.
XYZ Foods also has two strategies:
1. Issue coupons to customers.
2. Reduce the quality of its ingredients.
### Payoff Matrix
The profits (in thousands of dollars) for both ABC Products and XYZ Foods for each combination of strategies are presented in a payoff matrix:
[tex]\[ \begin{array}{|c|c|c|} \hline ABC \backslash XYZ & \text{Coupon} & \text{Reduce Quality} \\ \hline \text{Reduce size} & (\$10, \$60) & (\$50, \$50) \\ \hline \text{Advertise} & (\$20, \$40) & (\$40, \$20) \\ \hline \end{array} \][/tex]
To understand this matrix:
- (\[tex]$10, \$[/tex]60) indicates:
- ABC Products earns \[tex]$10,000. - XYZ Foods earns \$[/tex]60,000.
- This happens when ABC Products reduces the size of its packaging and XYZ Foods issues coupons.
- (\[tex]$50, \$[/tex]50) indicates:
- ABC Products earns \[tex]$50,000. - XYZ Foods earns \$[/tex]50,000.
- This happens when ABC Products reduces the size of its packaging and XYZ Foods reduces the quality of its ingredients.
- (\[tex]$20, \$[/tex]40) indicates:
- ABC Products earns \[tex]$20,000. - XYZ Foods earns \$[/tex]40,000.
- This happens when ABC Products advertises and XYZ Foods issues coupons.
- (\[tex]$40, \$[/tex]20) indicates:
- ABC Products earns \[tex]$40,000. - XYZ Foods earns \$[/tex]20,000.
- This happens when ABC Products advertises and XYZ Foods reduces the quality of its ingredients.
### Summary
Combining the profits associated with each combination of these strategies, the payoff matrix for both firms is:
- Reducing the size of packaging and issuing coupons: (\[tex]$10, \$[/tex]60)
- Reducing the size of packaging and reducing quality: (\[tex]$50, \$[/tex]50)
- Increasing advertising and issuing coupons: (\[tex]$20, \$[/tex]40)
- Increasing advertising and reducing quality: (\[tex]$40, \$[/tex]20)
This information encapsulates the strategic choices and potential outcomes for both ABC Products and XYZ Foods.
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