Question: While doing the necessary detective work can be tedious and time - consuming, studying the strategies and situations of rival companies ( most especially close
While doing the necessary detective work can be tedious and timeconsuming, studying the strategies and
situations of rival companies most especially close rivals well enough to be able to anticipate many of their next
moves has the big advantage of
allowing company managers to accurately predict which rival companies are destined to gain market share
and which ones are destined to lose market share over the next years.
enabling company managers to determine which successful strategy elements of rival companies need to be
quickly incorporated into the company's own strategy.
helping company managers determine which rivals in other strategic groups need to be monitored very
closely.
enabling a company to successfully underprice rival companies and steal away some of their sales and market
share.
enabling managers to prepare effective countermoves perhaps to even beat a rival to the punch and to take
rivals' probable actions into account in crafting their own best course of action.
Which of the following generally do not qualify as a barrier to entry?
High capital requirements and the cost advantages enjoyed by existing industry members
The ability and willingness of industry incumbents to launch strong defensive maneuvers to maintain their
positions and make it harder for a newcomer to compete successfully and profitably
Tariffs and other burdensome international trade restrictions
Rapid market growth and low degrees of customer loyalty to existing brands
The difficulties of building a network of distributorsretailers and securing adequate space on retailers'
shelves
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