The two factors that determine the extent to which firms will be in direct competition with one another are market commonality and resource similarity.

Question

Quizplus · Accepted Answer

Market commonality refers to the degree to which firms compete in the same market with similar products or services. Resource similarity refers to the extent to which firms utilize comparable resources and capabilities to create their products or services. The combination of these factors will determine the level of competition between firms. Therefore, the statement is true.

The Two Factors That Determine the Extent to Which Firms