Rapid-Built Homes specializes in low-cost prefabricated, modular homes that can be erected in a matter of days anywhere in the country. Rapid-Built focuses on entire subdivisions of homes developed by real estate speculators. ModernModular Homes (ModMod) specializes in modular homes designed by architects, which can be built anywhere in the country. The buyers usually build the home themselves from kits on their own lots. ModMod sells fewer than 100 house kits per year. ModMod is run by two professors of architecture as a sideline business. According to the "Framework of Competitive Analysis," we can say that Rapid-Built and ModMod
A) are direct mutually acknowledged competitors.
B) have high resource similarity.
C) have high market commonality.
D) are probably not engaged in intense competitive rivalry.

Question

Quizplus · Accepted Answer

Rapid-Built and ModMod specialize in different types of modular homes and serve different types of customers. Rapid-Built focuses on subdivisions developed by real estate investors, while ModMod serves individual home buyers who want to build their homes themselves. Therefore, they are not direct competitors and are unlikely to engage in intense competitive rivalry. They also have low market commonality and resource similarity.

Rapid-Built Homes Specializes in Low-Cost Prefabricated, Modular Homes That Can