Question

Calculating competitive strength ratings for a company and comparing them against strength ratings for its key competitors helps indicate

a. which weaknesses and vulnerabilities of competitors the company might be able to attack successfully.
b. which competitors are employing offensive strategies and which competitors are employing defensive strategies.
c. what the industry's key success factors are.
d. which competitors are likely to make money and which are likely to lose

Answer 1

Comparing competitive strength ratings helps indicate potential weak points in competitors and key success factors in the industry. Correct options are a) and b)

Step-by-step explanation:

When calculating competitive strength ratings for a company and comparing them against strength ratings for its key competitors, it helps indicate two things:

1. a. Which weaknesses and vulnerabilities of competitors the company might be able to attack successfully: By comparing the company's competitive strength ratings with its competitors', the company can identify areas where the competitors are weak or vulnerable. This allows the company to develop strategies to target those weaknesses and gain a competitive advantage.
2. b. What the industry's key success factors are: Comparing the competitive strength ratings of different companies in the same industry provides insights into the factors that contribute to success in that industry. By analyzing the strengths of successful competitors, the company can identify the key success factors and prioritize them in their own strategy.