• Ringtone andPhones-R-Us are both successful companies in the cellular phoneretail sales business. On the one hand, Phones-R-Us pursues alow-cost strategy and has fairly high employee turnover rates. Thefirm relies on a high volume of phone sales to generate revenue. Onthe other hand, Ringtone pursues a competitive advantage based oncustomer intimacy and has very loyal employees. Ringtone sellsexpensive, high-quality phones and relies on its employees toprovide high-quality customer service to generate sales.
• The salesrepresentative for both companies “bring in the bacon.” As suchthese people are a key factor to the firms’ success. How shouldeach company source recruits for the position?
