In Which of the Following Instances Are Industry Members Not

question 52

Multiple Choice

In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?

• A) The costs to buyers of switching over to the substitutes are low.
• B) Buyers are dubious about using substitutes.
• C) The quality and performance of the substitutes is well matched to what buyers need to meet their requirements.
• D) Buyer brand loyalty is weak.
• E) Substitutes are readily available at competitive prices.

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Definitions:

Efficient Management

The practice of managing resources in a way that achieves maximum productivity and effectiveness with minimal waste.

All-equity Financed

Refers to a business or project that is funded exclusively through equity capital, with no debt or financial leverage involved.

Net Benefit

A measure of the total positive outcomes minus the total negative outcomes resulting from a decision or action.

Divestiture

The process of selling an asset or subsidiary by a company to optimize its portfolio or raise funds.