Competitive strength can be determined by assigning measures based on perceived importance because
A)it provides a more accurate assessment of the strength of competitive forces.
B)it eliminates the bias introduced for those firms having large market shares.
C)the different measures of competitive strength are unlikely to be equally important.
D)the results provide a more reliable measure of what competitive moves rivals are likely to make next.
E)weighting each company's overall competitive strength by the size of its market share produces a more accurate measure of its true competitive strength.

Question

Quizplus · Accepted Answer

Perceived importance allows for different measures of competitive strength to be weighted based on their relative significance, which provides a more accurate assessment of a firm's overall competitive strength. It does not eliminate bias introduced by large market shares, nor does it necessarily provide a more reliable measure of future competitive moves. Weighting by market share may be useful in some contexts, but it is not the only or necessarily the most accurate way to measure competitive strength.

Competitive Strength Can Be Determined by Assigning Measures Based on Perceived