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VRIO Analysis vs OCAT

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Questions and Answers

What does rivalry in VRIO analysis measure?

Market growth potential
Market share of each firm
Competition between existing firms (correct)
Profitability of the firms

Which of the following is NOT a factor affecting the intensity of rivals' rivalries?

Lack of differentiation
Low exit barriers (correct)
Numerous competitors
High fixed costs

In which type of industry is intense rivalry common according to the text?

Industries with few competitors
Industries with low fixed costs
Industries with high strategic stakes
Industries with many companies (correct)

What happens to rivalry in a slow-growth market according to the text?

It becomes more intense as firms fight for market shares (B) Signup and view all the answers

Which factor is not mentioned as a prominent factor affecting the intensity of firms' rivalries?

High entry barriers (A) Signup and view all the answers

Why is it common for a few firms in industries with numerous competitors to believe they can act without eliciting a response?

They are not aware of their competitors' actions (C) Signup and view all the answers

What impact does a growing market have on rivalry according to the text?

It decreases rivalry as firms focus on expanding customer base (B) Signup and view all the answers

Which factor contributes to making rivalry more difficult for existing firms?

High exit barriers (C) Signup and view all the answers

What happens to profitability when the degree of rivalry is higher according to VRIO analysis?

'Profitability decreases with higher rivalry' (A) Signup and view all the answers

Which of the following is a factor that increases the degree of rivalry in VRIO analysis?

Lack of differentiation (A) Signup and view all the answers