Question

Which of the following firms would likely pose the least competitive threat?

a.A firm in the same industry and in the same strategic group
b.A firm that produces substitute goods to your product line
c.A competitor to your product where a high switching cost exists
d.A firm in the same industry and in the nearest strategic group looking to join your group

Answer 1

Answer:

a. A firm in the same industry and in the same strategic group

Explanation:

• A firm is said to be a least competitive threat when the rival company produces good and at a  price that is lower than your product line or when a company is a competitor with a higher price, market and a product line and threats from the new entrant and the threat of the substance product or services.