Question

Which of the following statements about market opportunity is correct?

a) Market opportunity is a big factor in shaping a company's strategy.

b) Depending on the prevailing circumstances, a company's opportunities can be plentiful or scarce and can range from wildly attractive to unsuitable. Correct

c) In evaluating the attractiveness of a company's market opportunities, managers have to guard against viewing every industry opportunity as a suitable opportunity.

d) A distinctive competence is a big factor in evaluating the attractiveness of a company's market opportunities because managers have to guard against viewing every industry opportunity as a suitable opportunity.

Answer 1

Market opportunity significantly shapes a company's strategy, and it is crucial for managers to evaluate these opportunities carefully, considering the company's distinctive competence and the competitive market structure.

Step-by-step explanation:

The correct statement about market opportunity is that it is a significant factor in shaping a company's strategy. Depending on the existing conditions, companies might find opportunities abundant or scarce and, correspondingly, highly attractive to utterly unsuitable. Additionally, distinctive competence plays a pivotal role in evaluating these market opportunities, as managers must be cautious not to assume that every industry opportunity is a good fit for the company.

Market opportunity can be influenced by various external factors, including the interconnectedness of markets and how a country or firm competes globally. Market structure is also a crucial component, defined by the level of competitiveness within the industry and how much market power each firm possesses. Companies aim to gain competitive advantages, like a central location or unique resources, which can significantly enhance their market opportunities and support strategic business decisions.