Which combination of resource similarity and market commonality results in the least intense competition?
A) High resource similarity, low market commonality
B) Low resource similarity, high market commonality
C) Low resource similarity, low market commonality
D) High resource similarity, high market commonality

Question

Which combination of resource similarity and market commonality results in the least intense competition? 
A) High resource similarity, low market commonality 
B) Low resource similarity, high market commonality 
C) Low resource similarity, low market commonality 
D) High resource similarity, high market commonality

Quizplus · Accepted Answer

When there is low resource similarity but high market commonality, the companies are likely to specialize in different areas, resulting in less competition as they are not directly competing with each other in the same market. This is known as indirect competition.

Which Combination of Resource Similarity and Market Commonality Results in the Least