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Free response · 2.6 Place and Channels
Exam-style concept-application task: apply the topic to a new business scenario. Suggested time 12–13 minutes.
FRQ 3 — Concept application (3 points)
Orbit Lenses makes a specialty contact lens for a rare eye condition. It currently sells only through its own website, where patients upload a prescription. An optical retail chain with 400 stores offers to carry the lens; the chain would take 35% of the price, control in-store display and pricing, and require Orbit to train the chain's staff. Because the lens requires a prescription, it can be dispensed only by licensed eye-care providers.
(A) Classify Orbit's current channel using two of the framework's channel categories, and identify the legal constraint on its channel choices. 1 pt
(B) Explain ONE advantage and ONE disadvantage of adding the retail chain as a channel, using the framework's selection criteria. 1 pt
(C) Recommend whether Orbit should add the chain, and justify using its competitive-advantage strategy from earlier topics (a differentiated, quality-based product). 1 pt