Calculating Competitive Strength Ratings for a Company and Its Rivals

question 106

Multiple Choice

Calculating competitive strength ratings for a company and its rivals using the industry's most telling measures of competitive strength or weakness

• A) is a way of determining which competitor has the biggest overall competitive advantage in the marketplace and which competitor is faced with the biggest overall competitive disadvantage.
• B) is the most reliable indicator of which industry member has the highest overall product quality.
• C) is a powerful way of revealing which competitors are in the best and worst strategic groups.
• D) is the most reliable indicator of which industry member has the lowest overall costs and is the low-cost leader.
• E) pinpoints which industry rivals are most insulated from the industry's driving forces.

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Definitions:

Delegation

The process of assigning responsibility and authority from one person or entity to another to carry out specific activities.

Obligor

A person or entity legally obligated to provide a benefit or payment to another in a contract.

Assignee

An individual or entity to whom rights or responsibilities are legally transferred from another.

Novation

The act of replacing an old obligation with a new one, substituting a new party for the original party, or changing the terms of an existing obligation.