How do scholars explain differences in firm performance within the same industry?
What will be an ideal response?
To explain differences in firm performance within the same industry, scholars offer the strategic group model, which clusters different firms into groups based on a few key strategic dimensions. They find that even within the same industry, firm performances differ depending on strategic group membership. Some strategic groups tend to be more profitable than others. This difference implies that firm performance is determined not only by the industry to which the firm belongs, but also by its strategic group membership. The distinct differences across strategic groups reflect the business strategies that firms pursue. Firms in the same strategic group tend to follow a similar strategy. Companies in the same strategic group, therefore, are direct competitors.
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Which of the following is not important in composing the body of an oral presentation?
A) Define both familiar and unfamiliar terms. B) Use simple sentences. C) Emphasize main points. D) Announce transitions from one point to the next.
Blue Legion, a well-known jeans manufacturer, is the main sponsor for a rock concert. Although the tickets to the concert are exorbitantly priced, the public feels that since the concert is being sponsored by a company like Blue Legion, it must be worth it. The scenario illustrates that Blue Legion has a good _____.
A. brand valuation B. productconsistency C. brand equity D. product mix
The vertical analysis of a balance sheet for a coffee shop is created in Excel. Cash assets are in Cell C9 and total assets are in Cell C16. Write two ways for keying cash as a percent of total assets into Cell D9
Jamie's Motor Home Sales currently sells 110 Class A motor homes, 220 Class C motor homes, and 280 pop-up trailers each year. They are considering adding a mid-range camper with expected annual sales of 300 units. However, if the new camper is added, Class A sales will decline to 85 units and the Class C camper sales will decline to 200 units. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $140,000 each. Class C homes are priced at $59,500, and the pop-ups sell for $5,000 each. The new mid-range camper will sell for $42,900. What is the annual erosion cost of adding the mid-range camper?
A) $5,425,000 B) $4,690,000 C) $5,375,000 D) $6,315,000 E) $7,875,000