Durable Ceramics Inc delivers inexpensive ceramic tile to builders of institutional buildings such as schools prisons as well as public administration buildings. It has always contested on a cost leadership basis. Most of its products are bought by a few commercial construction firms thus it is fairly dependent on these construction firms for selling its product. Sturdy Ceramic's next most-efficient competitor Cost-Less Ceramics is slightly lucrative, while Durable is extremely profitable. The commercial construction companies are putting pressure on Tough to reduce its prices. If Tough reduces its prices below those of Cost-Less's prices it is likely that