Competition in the global automobile producer industry is characterized by________________ (Chapter 5 Strategic Focus)
A) lack of awareness and motivation.
B) high market commonality and low resource similarity.
C) high market commonality and high resource siimilarity.
D) reduced rivalry, especially in the production of fuel efficient cars.

Question

Quizplus · Accepted Answer

The industry is characterized by high market commonality as firms compete in multiple countries with similar products, and high resource similarity as they use similar production technologies and supply chains. This leads to intense rivalry among firms. Option A and D are incorrect as they do not reflect the actual characteristics of the industry. Option B is incorrect as it suggests low rivalry when in fact the opposite is true.

Competition in the Global Automobile Producer Industry Is Characterized By________________