Drawbacks to which of the following industry rivalry management strategies include allowing companies with high cost structures to survive without implementing efficiency strategies despite the fact that this leaves them vulnerable in the long term?
A) Price signaling
B) Price leadership
C) Non-price competition
D) Market penetration
E) Product development

Question

Quizplus · Accepted Answer

The drawback described in the question is associated with Price leadership, as it involves allowing companies with high cost structures to survive in the market by setting the price standard. This may be disadvantageous in the long term as these companies are not inclined to implement efficiency strategies, which could leave them vulnerable to competitors offering similar products or services at lower prices.

Drawbacks to Which of the Following Industry Rivalry Management Strategies