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

Question

Quizplus · Accepted Answer

A competitor to your product where a high switching cost exists would likely pose the least competitive threat because customers are less likely to switch to a competitor's product if it costs them significantly to do so. This creates a barrier to competition.

Which of the Following Firms Would Likely Pose the Least