A Competitive Environment Where There Is Strong Rivalry Among Sellers

question 93

Multiple Choice

A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers

• A)is competitively unattractive from the standpoint of earning good profits.
• B)offers little ability to build a sustainable competitive advantage.
• C)is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand.
• D)offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage.
• E)requires that industry members have a strongly differentiated product offering in order to be profitable.

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Definitions:

Assets

Resources owned by a company that provide future economic benefits.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled over time through the transfer of economic benefits.

Surrenders Control

The action of relinquishing authority, power, or ownership over an entity, asset, or decision-making process to another party.

Transfer of Receivables

This refers to the process where a company assigns the right to collect cash from its outstanding invoices to another party, often in exchange for immediate cash.