BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Barriers to Entry
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Economies of Scale
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Product Differentiation
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Capital Requirements
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Detailed explanation-1: -Economies of Scale-it refers to the marginal improvement in efficiency that the firm experiences as it incrementally increases in size.
Detailed explanation-2: -A threat is a condition in the general environment that may hinder a company’s efforts to achieve strategic competitiveness.
Detailed explanation-3: -Competitor analysis is focused on the factors and conditions influencing an industry’s profitability potential. When firms analyze the external environment, they typically have complete and unambiguous data. Monitoring involves the development of a forecast of what might happen at a future point in time.
Detailed explanation-4: -The competitor analysis is the final part of the external environment analysis and focuses on each company against which a firm directly competes (for example, Coca-Cola and PepsiCo, Home Depot and Lowe’s, and Airbus and Boeing).