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For a Firm to Imitate the Strategy of Another Firm

question 54

True/False

For a firm to imitate the strategy of another firm, and replicate its competitive advantage, it must do four things: identify the target firm, incentivize the rival, diagnose the sources of competitive advantage, and acquire the resources needed

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Definitions:

Market Value

The total worth of an asset or company based on the current price at which it can be sold in the market.

Incremental Value

The additional value created by undertaking a specific action or project, calculated as the difference between the value with the action and without it.

All-Stock Deal

A type of acquisition where the buyer company purchases another company using its own stock as currency, instead of cash.

Outstanding Stock

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

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