Rather Than Competing Head to Head with Established Competitors,many Companies

question 148

Multiple Choice

Rather than competing head to head with established competitors,many companies seek out unoccupied positions in uncontested market spaces.They try to create products and services for which there are no direct competitors.This is called a ________.

• A) "red ocean strategy"
• B) "strategic sweet spot"
• C) "common platform"
• D) "blue ocean strategy"
• E) "strategic platform"

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service, a crucial concept in economic decision-making and pricing strategies.

Perfectly Competitive

A market structure where many firms offer a homogeneous product, there are no barriers to entry or exit, and all firms are price takers.

Oligopolistic

Oligopolistic refers to a market structure characterized by a small number of large firms dominating the market, leading to limited competition.

Marginal Cost

The extra expense derived from the production of an additional unit of a product or service.