When any two firms have both a high degree of market commonality and highly similar resources,a ______________ threat is present.
A) weaker competitive
B) stronger competitive
C) successful marketing
D) stronger marketing

Question

Quizplus · Accepted Answer

When any two firms have both a high degree of market commonality and highly similar resource bases, a stronger competitive threat is present. Such a threat, however, may not lead to competitive action. On the one hand, a market rival may be hesitant to attack a company that it shares a high degree of market commonality with because it could lead to an intense battle. On the other hand, once attacked, rivals with high market commonality will be much more motivated to launch a competitive response.

When Any Two Firms Have Both a High Degree of Market