Which Market Location Tactic Is Being Used When a Company

question 79

Multiple Choice

Which market location tactic is being used when a company attempts to cut the market out from under the established defender by offering a new type of product that makes the competitor's product unnecessary?

• A) flanking maneuver
• B) bypass attack
• C) encirclement
• D) guerrilla warfare
• E) frontal assault

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Definitions:

Price-fixing

An illegal agreement among competitors to set prices at a certain level, rather than letting them be determined naturally by the market.

Sherman Act

A foundational antitrust law in the United States enacted in 1890 to combat monopolies and restrictions on competition, promoting fair competition for the benefit of consumers.

Clayton Act

A United States antitrust law, enacted in 1914, aimed at preventing monopolies and unethical business practices that threaten fair competition.

Anticompetitive Mergers

Mergers between companies that significantly reduce competition in a market, potentially leading to higher prices, lower quality, or less innovation.