Wal-Mart has recently opened a store in Alsatia, Missouri. Several local small retailers have decided that choosing not to respond to Wal-Mart's competitive actions is a viable long-term option, because although the companies have high market commonality they have little resource similarity. These small retailers are correct in their decision.

Question

Quizplus · Accepted Answer

Small retailers with high market commonality but low resource similarity are likely to be at a competitive disadvantage against a large corporation like Wal-Mart, which can leverage its extensive resources to dominate the market. Ignoring Wal-Mart's competitive actions could lead to loss of market share and potentially drive them out of business.

Wal-Mart Has Recently Opened a Store in Alsatia, Missouri