Resource similarity and each other.

Question

Quizplus · Accepted Answer

Market commonality refers to the degree to which two firms have overlapping products, services, or customers. This directly determines how much they will compete with each other. Resource similarity, which refers to how similar the resources of two firms are, can also contribute to competition if they are competing for the same resources. However, market commonality is a more direct factor in determining competition. Resource quality, related diversification, and product differentiation are important factors in a firm's competitive strategy, but do not directly determine competition with other firms.

Resource Similarity and Each Other