Calculating Competitive Strength Ratings for a Company and Its Rivals

question 127

Multiple Choice

Calculating competitive strength ratings for a company and its rivals using the industry's most telling measures of competitive strength or weakness

• A)is a way of determining which competitor has the highest overall competitive advantage in the marketplace and which competitor is faced with the lowest overall competitive disadvantage.
• B)is the most reliable indicator of which industry member has the highest overall product quality.
• C)is a powerful way of revealing which competitors are in the best and worst strategic groups.
• D)is the most reliable indicator of which industry member has the lowest overall costs and is the low-cost leader.
• E)pinpoints which industry rivals are most insulated from the industry's driving forces.

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Definitions:

Surplus

A situation in which the quantity of a good or service supplied exceeds the quantity demanded, often leading to a price reduction.

Shortage

A situation in which the demand for a product exceeds the supply available at a specific price.

Lemonade Market

A hypothetical or real market scenario used to illustrate the principles of supply and demand, usually involving the sale of lemonade.

Surplus

An excess of production or supply over demand, often leading to lower prices or wasted resources.