Resource similarity and _____ are factors that determine the extent to which firms will be in direct competition with each other.
A)market commonality
B)resource quality
C)related diversification
D)product differentiation
E)customer autonomy

Question

Quizplus · Accepted Answer

Market commonality and resource similarity are the two primary factors that determine the extent to which firms will be in direct competition with each other. Market commonality refers to the degree to which two firms compete in the same product and geographic markets, while resource similarity refers to the extent to which their tangible and intangible resources and capabilities are comparable. The higher the market commonality and resource similarity between two firms, the greater the likelihood of direct competition. Therefore, option A (market commonality) is the correct choice. Options B (resource quality), C (related diversification), D (product differentiation), and E (customer autonomy) are not directly related to determining the degree of competition between firms.

Resource Similarity and _____ Are Factors That Determine the Extent