Answered: When drawing a strategic group map…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Transcribed Image Text:When drawing a strategic group map Select one: A. it is important for the variables used as axes to be highly correlated. OB. the primary objective is to determine which strategic groups are profitable and which are not C. one strategic variable and one financial variable should be used as axes for the map. D. it is important to use price as the variable for the vertical axis OE the best variables to use as axes for the map are those that identify the competitive characteristics that delineate strategic approaches used in the industry Competitive pressures associated with the threat of entry are greater in all of the following situations except when Select one: OA entry bamers are relatively low and buyer demand for the product is growing rapidly, and newcomers can expect to eam attractive profts without inviting a strong reaction from incumbents. B. existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence. OC a large pool of potential entrants exists, some of which have the capabilities to overcome high entry barners. OD. incumbent firms are willing to strongly contest the entry of newcomers with moves designed to make entry unprofitable O E customers have low brand preferences and low degrees of loyalty to seller.

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