An organization has few rivals in the industry. These rivals are considering such moves as price changes, capacity adjustments, or new product features. Which of the following will help the organization predict the strategic actions most likely to be taken by its rivals?

Question

Quizplus · Accepted Answer

Game theory is the best choice for predicting strategic actions taken by rivals because it involves analyzing the decision-making process of competitors and predicting their behavior in response to certain situations or actions taken by the organization. This analysis can then be used to inform the organization's own strategy and decision-making. Structural analysis and the study of productivity may provide useful insights but are less directly relevant to predicting competitors' behavior. Strategic canvas is a tool for analyzing an organization's current strategy and competitive landscape, but is not specifically designed for predicting rival actions.

An Organization Has Few Rivals in the Industry