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.

---

Definitions:

Specified Leasing

A leasing agreement in which the terms, including the lease duration, payment schedule, and type of asset, are explicitly stated.

Manufacturing Tools

Instruments, machines, or related items used in the manufacturing process to produce goods and products.

Obsolete

Refers to products, technologies, or methods that are out-of-date or no longer in use.

Simple Interest Loan

A loan where interest is calculated only on the principal amount, not on accumulated interest.