H is the owner of a motorcycle dealership in Los Angeles which provides sales, repair...

Vendor: CIMA
Product: E2
Update on: Dec 15, 2025
Questions: 210

CIMA E2 Question Answer

H is the owner of a motorcycle dealership in Los Angeles which provides sales, repair and servicing of very large motorcycles, typically with engines larger than 1000cc. Over the years H has built up a renowned team of highly skilled technicians that are experts in this particular size of motorcycle. H believes that their skills are rare and difficult, if not impossible, to imitate by any competitor in the region.

Despite this advantage the company has been suffering from declining profits in the past three years and the marketing consultant has advised H to change the focus of the company towards small 50cc mopeds and scooters - because that "is clearly what the market is now wanting".

The change being proposed is:

from a resource-based view to a positioning approach.

from a resource-based view to an incremental approach.

from a positioning approach to a 'market driven' strategy.

from a positioning approach to a rational model.