Question

A weighted competitive strength analysis is conceptually stronger than an unweighted analysis because

A. it provides a more accurate assessment of the strength of competitive forces.
B. it eliminates the bias introduced for those firms having large market shares.
C. the different measures of competitive strength are unlikely to be equally important

Answer 1

A weighted competitive strength analysis is conceptually stronger than an unweighted analysis because it provides a more accurate assessment of the strength of competitive forces and eliminates bias.

Step-by-step explanation:

A weighted competitive strength analysis is conceptually stronger than an unweighted analysis because it provides a more accurate assessment of the strength of competitive forces. By assigning different weights to various measures of competitive strength, the analysis takes into account the relative importance of each factor. This allows for a more nuanced and comprehensive evaluation of the competitive landscape. Additionally, a weighted analysis can help eliminate bias towards firms with large market shares, ensuring a fair and unbiased assessment.