Which of the following firms would likely pose the least competitive threat?
A) a firm in the same industry and in the same strategic group
B) a firm that produces substitute goods to your product line
C) a competitor to your product where a high switching cost exists
D) a firm in the same industry and in the nearest strategic group looking to join your group

Question

Quizplus · Accepted Answer

The competitive threat of intense rivalry can result from lack of differentiation or switching costs. When switching costs are high, this threat is lowered.

Which of the Following Firms Would Likely Pose the Least