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:

Franchise Rule

A regulation designed to govern the sale of franchises, requiring franchisors to provide potential franchisees with disclosure documents containing vital details about the franchise.

Federal Trade Commission

A U.S. government agency aimed at protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.

Franchisor

A person or company that grants the license to a third party for the conducting of a business under the franchisor's marks, name, and business model.

Business Trust

A business organization governed by a group of trustees, who operate the trust for beneficiaries.