A Competitive Environment Where There Is Weak to Moderate Rivalry

question 115

Multiple Choice

A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers

• A)lacks powerful driving forces.
• B)gives each industry competitor the best potential for building sustainable competitive advantage over rival firms.
• C)makes it challenging for industry members to compete successfully unless they can strongly differentiate their products.
• D)is conducive to industry members earning attractive profits.
• E)requires that industry members have low costs in order to be competitively successful.

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Definitions:

Sales Per Square Foot

A metric used in retail to measure the amount of revenue generated per square foot of sales space.

Product Quality

The level of excellence of a product, measured by its durability, reliability, and performance against specified standards.

Open Innovation

A business model that encourages companies to use external as well as internal ideas and paths to market while advancing their technology.

External Collaboration

The act of partnering or working together with outside individuals or organizations to achieve common goals or complete projects.