One of the Things That Can Be Gleaned from a Strategic

question 31

Multiple Choice

One of the things that can be gleaned from a strategic group map of industry rivals is

• A)which rivals have been in business longer and thus have greater access to experience curve effects.
• B)which rivals have newer manufacturing facilities and thus have achieved greater product quality.
• C)which strategic groups have the highest profit margins and the highest customer switching costs and thus represent key operating characteristics.
• D)that some strategic groups are more favorably positioned than others because they confront weaker competitive forces and/or because they are more favorably impacted by industry driving forces.
• E)which strategic groups are currently being shunned by customers because of high prices and relatively low product quality.

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Definitions:

Modular Organization

A flexible organizational structure where components or modules can be easily assembled, reassembled, added, or removed to adapt to changing demands.

Market Mechanisms

The use of market principles and forces to allocate resources and determine prices within an economy.

Formal Lines

Predetermined channels of communication and authority within an organization, established through its structure and policies to ensure effective coordination and control.

Virtual Organization

A network of continually evolving independent organizations that share skills, costs, and access to one another’s markets.