Under industry structural analysis (chapter 2), ____ rivalry is viewed as detrimental to profitability. Under the model of national advantage (chapter 8), ____ rivalry is viewed as ____ as it results in competition and surviving firms are able to compete against global rivals.
A) low; low; beneficial
B) low; low; detrimental
C) high; high; beneficial
D) high; high; detrimental

Question

Quizplus · Accepted Answer

In industry structural analysis, high rivalry is detrimental to profitability as it increases competition and reduces margins. However, in the model of national advantage, high rivalry is seen as beneficial because it drives firms to improve and become more competitive globally.

Under Industry Structural Analysis (Chapter 2), ____ Rivalry Is Viewed