Question

Give opinion:

Given that GE is already an established provider in this industry; them implementing the plan to spend more on advertising will just give them that much more of an advantage over Maytag. Now Maytag as well can decide to increase the amount they spend on advertising which will increase their likelihood of sales, however; the amount that they will need to spend on advertisement to possibly supersede GE may not be worth the investment. Overall, should GE pursue the option of spending more on advertisement to keep Maytag out of the running? Yes. In my opinion GE has an upper-hand and will generate profits regardless of their competitors. So putting more money into their advertisement will make their selling power stronger and further encourage those that are dedicated to stay loyal customers. Therefore, positive outcomes are greater likelihood than loss of expense.

Answer 1

In my opinion, GE can advertise, it is their dominant strategy. They are already established. Whether Maytag advertises or not advertise, GE is better off with advertising as they will be having a higher pay off. Maytag does not have a pure strategy. It's strategy depends on the strategy of GE. If GE does no advertise, it is better for Maytag to advertise. If GE advertises, Then Maytag will not be getting much beneft from advertising. So Maytag has a mixed strategy depending on the behaviour of GE