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Dell has been the longtime leader in the custom built, direct to consumer segment of the PC business. HP recently surpassed Dell as market share leader. In response, Dell has begun experimenting with opening retail stores to counter HP’s presence in consumer electronics stores such as Best Buy. Which of the following judgments is likely to be CORRECT?
A. Because Dell offers built-to-order computers and HP focuses on sales of pre-built machines through retail distribution, the two firms are not competitors.
B. HP’s decision to focus its attention on markets where Dell was absent means HP was a late mover.
C. Because Dell has not previously operated its own stores, it is a first mover in retail PC sales.
D. Dell’s decision to open retail stores at consumer electronics stores is a response that may incur HP’s competitive actions such as price cut
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