In the context of direct competition between firms _____ largely affects response capability, that is, how quickly and forcefully a company can respond to an attack.
A) diversification
B) cost leadership
C) differentiation
D) resource similarity

Question

Quizplus · Accepted Answer

Resource similarity refers to the extent to which a company's tangible and intangible resources and capabilities are comparable to a competitor's. The greater the resource similarity between firms, the more difficult it is for a company to respond quickly and effectively to an attack because the competitor is likely to have similar resources and capabilities. Therefore, resource similarity largely affects response capability in direct competition between firms.

In the Context of Direct Competition Between Firms _____ Largely