Why Is It Often a Good Idea to Be Unpredictable

question 35

Multiple Choice

Why is it often a good idea to be unpredictable in a hypercompetitive situation?

• A) Because this creates market confusion, which increases sales.
• B) Because if competitors can see a pattern they can predict the next competitive move.
• C) Because if your organisation can identify a pattern, it is likely that the competition can also do so.
• D) Because if competitors can see a pattern your organisation will not be able to predict its own future moves.

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Definitions:

Industry Concentration

Industry concentration is a measure of the extent to which a small number of firms dominate the total production, sales, or market share in a particular industry, often analyzed through concentration ratios or the Herfindahl-Hirschman Index (HHI).

Four Firm Concentration Ratio

A metric assessing the total market share controlled by the four largest firms within a specific industry, used to evaluate market competitiveness.

Herfindahl-Hirschman Index

A measure of market concentration to assess the level of competition among firms within an industry.

Market Share Percentages

The proportion of sales in the total market sold by one company, expressed as a percentage.