In the context of direct competition between firms, _____ affects the likelihood of an attack or a response to an attack.
A) diversification
B) cost leadership
C) differentiation
D) market commonality

Question

Quizplus · Accepted Answer

Market commonality refers to the degree to which two firms have overlapping target markets. The greater the market commonality between two firms, the more likely they are to attack each other or respond to an attack from one another. Diversification, cost leadership, and differentiation are competitive strategies and do not directly affect the likelihood of attack or response to attack.

In the Context of Direct Competition Between Firms, _____ Affects