In the context of direct competition, _____ is defined as the degree to which two companies have overlapping products, services, or customers in multiple markets.
A) related product diversification
B) resource similarity
C) market inertia
D) market commonality

Question

Quizplus · Accepted Answer

Market commonality is a measure of the degree to which companies compete in the same markets with similar products or services. When the market commonality is high, companies are more likely to engage in direct competition as they are targeting the same customers with similar offerings. In contrast, when the market commonality is low, companies are more likely to engage in different markets, resulting in less direct competition. Therefore, market commonality is a critical factor when evaluating the intensity of direct competition between two companies.

In the Context of Direct Competition, _____ Is Defined as the Degree