The critical variables that should be considered in conducting competitive analysis are
A) How similar are the products and customer segments of the company to those of their competitors
B) The number of foreign employees hired by competitors
C) The number of foreign subsidiaries owned by competitors
D) The Fortune Global 500 rankings of competitors

Question

Quizplus · Accepted Answer

The critical aspect of competitive analysis involves understanding how similar a company's products and customer segments are to those of its competitors. This helps in identifying direct competitors and understanding competitive positioning. Variables like the number of foreign employees, the number of foreign subsidiaries, or Fortune Global 500 rankings, while informative, do not directly impact the competitive strategy as much as understanding product similarity and customer overlap.

The Critical Variables That Should Be Considered in Conducting Competitive