Members of a Strategic Group

question 58

Multiple Choice

Members of a strategic group:

• A) compete only with members of other strategic groups.
• B) are affected by Porter's five competitive forces in the same way and to the same degree as the members of other strategic groups.
• C) follow a business model that is similar to that pursued by other companies in the group.
• D) face no threat of product substitutes from other members.
• E) move easily between groups without barriers.

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Definitions:

Trustbusters

Refers to government officials or policies that aim to break up or regulate monopolies and ensure competition in the marketplace.

FTC Act

Legislation established to prevent unfair competition, deceptive acts, and regulate antitrust.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 to preserve competitive market conditions by prohibiting monopolies, cartels, and trusts.

Vertical Mergers

The combination of two or more companies that operate at different stages of production in the same industry, such as a manufacturer merging with a supplier.