Members of a Strategic Group

question 58

Multiple Choice

Members of a strategic group:

• A) compete only with members of other strategic groups.
• B) are affected by Porter's five competitive forces in the same way and to the same degree as the members of other strategic groups.
• C) follow a business model that is similar to that pursued by other companies in the group.
• D) face no threat of product substitutes from other members.
• E) move easily between groups without barriers.

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Definitions:

Large Relative

Describing an entity or value that is significantly larger in comparison to others within a given context.

Market Power

An imperfectly competitive firm’s ability to raise price without losing all of the quantity demanded for its product.

Differentiated Products

These are products that are distinct from one another on the basis of branding, quality, or other characteristics that are valued by consumers.

Barriers

Obstacles that prevent entry into a market or hinder competition within a market.