In Mapping Strategic Groups

question 2

Multiple Choice

In mapping strategic groups

• A) one strategic variable and one financial variable should be used as axes for the map.
• B) it is important for the variables used as axes to be highly correlated.
• C) the best variables to use as axes for the map are those that differentiate how rivals have positioned themselves in the marketplace.
• D) it is important to use price as the variable for the vertical axis.
• E) the primary objective is to determine which strategic groups are profitable and which are not.

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Definitions:

Due Payment

The amount of money that is scheduled to be paid at a certain date as part of a financial obligation.

Delay Payment

The act of postponing a payment until a later time, often resulting in additional fees or interest.

Interest Rate

The percentage of a loan that comes with an interest charge to the borrower, often stated as an annual percentage of the loan balance.

Interest

The cost of borrowing money or the profit from lending it, typically expressed as an annual percentage of the principal.