Sometimes an Old Company in an Industry Can Build a Larger

question 8

Multiple Choice

Sometimes an old company in an industry can build a larger plant that has lower costs per unit than a potential entrant (newcomer) can duplicate. That is market:

• A) weakness based on cost.
• B) power based on scale economies.
• C) power based on specific assets.
• D) weakness based on reputation deficiency.

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Definitions:

Management Team

The group of individuals responsible for managing an organization and making key decisions to achieve its objectives.

Market Share

The share of a market dominated by a specific company or product, frequently represented as a percentage.

Marketing Plan

A comprehensive document or strategy outlining an organization's advertising and marketing efforts over a period, including campaigns, goals, and target markets.

Operations Plan

A detailed plan outlining the day-to-day activities necessary for running a business, including production, inventory, and distribution strategies.