According to D'Aveni

question 56

Multiple Choice

According to D'Aveni

• A) except for a few stable industries, strategy initiatives do not provide sustainable competitive advantage.
• B) hypercompetition is rare.
• C) it is enough to gain competitive advantage by being the lowest cost competitor.
• D) the theory of hypercompetition is not supported by any research.
• E) the American home appliance industry was immune to hypercompetition.

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Definitions:

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Incremental Revenue

Additional income generated from selling more units of a product or from launching a new product or service.

Relevant Information

Information that is applicable and crucial to the decision-making process, having the ability to affect the outcome of a decision.

Opportunity Cost

The value of the best alternative foregone as a result of choosing a different option.