Hilliard Pharmaceuticals 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. In this situation, Ahrens may view Hilliard's actions as a direct threat to its market position and may seek to retaliate with its own strategic moves to defend its position. Therefore, option C is the most likely answer. Options A and B are unlikely as they suggest that Ahrens will not respond aggressively, which is unlikely given the circumstances. Option D may be true in some cases, but it is not a given simply because the industry is slow-cycle.