Mobility barriers
A) prevent movement within a strategic group.
B) inhibit the movement of companies between strategic groups in an industry.
C) inhibit the movement of a company from one industry to another.
D) include exit barriers of the strategic group that a company wants to enter.
E) are low when exit barriers in the strategic group that a company is a member of are high.

Question

Quizplus · Accepted Answer

Mobility barriers inhibit the movement of companies between strategic groups in an industry. This means that companies may find it difficult to shift from one strategic group to another, as they may face various kinds of barriers such as brand loyalty, economies of scale, high switching costs, regulatory restrictions, etc. Exit barriers of the strategic group that a company wants to enter may also act as a barrier to entry. However, mobility barriers do not necessarily affect the movement of a company from one industry to another. Additionally, the relationship between mobility barriers and exit barriers in a strategic group is not necessarily inverse. High exit barriers in one group may not necessarily lead to low mobility barriers in another group.

Mobility Barriers