The Best Test of Whether Potential Entry Is a Strong

question 12

Multiple Choice

The best test of whether potential entry is a strong or weak competitive force is

• A)the strength of buyer loyalty to existing brands.
• B)whether the industry's driving forces make it harder or easier for new entrants to be successful.
• C)whether the strategies of industry members are well matched to the industry's key success factors.
• D)whether the industry offers an opportunity for a blue ocean strategy.
• E)to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates.

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Definitions:

Commodity Prices

The prices of basic goods that are typically used as inputs in the production of other goods and services, such as metals, agricultural products, and energy sources.

Resource Consumption

The use of resources, such as raw materials, energy, and labor, in the production of goods and services.

Productivity

The measure of output produced per unit of input used, indicating the efficiency and effectiveness of economic activity or production processes.

Population Increased

A rise in the number of individuals living in a specific area or within a particular group over a given time period.