Hilliard Neutraceuticals and Ahrens Vitamins, Inc., have high market commonality, both geographically and in the market segments in which they compete. Hilliard, the number two firm in the industry, has undertaken a major strategic attack upon Ahrens, the market leader. Which of the following statements is most likely to be TRUE?

Question

Quizplus · Accepted Answer

The high market commonality and multimarket contact between Hilliard and Ahrens suggest that Ahrens is likely to respond aggressively to Hilliard's strategic attack. This is because the two firms are likely to be competing for the same customers and resources, and a major strategic move by Hilliard is likely to cause disruption in the market. Therefore, it is likely that Ahrens will try to defend its market position and retaliate against Hilliard in some way to protect its market share.