With the Aid of a Strategic Group Map, One Can

question 95

Multiple Choice

With the aid of a strategic group map, one can

• A) identify easily the entry and exit barriers for each strategic group.
• B) pinpoint precisely which firms are in profitable strategic groups and which are not.
• C) identify which competitive forces are strong and which are weak.
• D) measure accurately whether across-group rivalry is stronger than within-group rivalry, and vice versa.
• E) reveal which companies are close competitors and which are distant rivals, and that not all positions on the map are equally attractive.

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Definitions:

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an asset at a set price within a specified time.

Call Option

A financial contract giving the holder the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific period.

Option Price

The price that the option buyer pays to the option seller (writer) for the rights conveyed by the option contract.

Warrants

Securities that grant the holder the right to purchase the company's stock at a predetermined price before a specified date.