Question

Rapid-Built Homes specializes in low-cost prefabricated, modular homes that can be erected in a mat-ter of days anywhere in the country. Rapid-Built focuses on entire subdivisions of homes developed by real estate speculators. ModernModular Homes (ModMod) specializes in modular homes designed by architects which can be built anywhere in the country. The buyers usually build the home themselves from kits on their own lots. ModMod sells fewer than 100 house kits per year. ModMod is run by two professors of architecture as a sideline business. According to the "Framework of Competitive Analys-is," we can say that Rapid-Built and ModMod a.are direct mutually-acknowledged competitors.b.have high resource similarity.c.have high market commonality.d.are probably not engaged in intense competitive rivalry.

Answer 1

Rapid-Built Homes and ModMod specialize in different segments of the modular homes market, suggesting they are not engaged in intense competitive rivalry.

Step-by-step explanation:

According to the "Framework of Competitive Analysis," Rapid-Built Homes and ModernModular Homes (ModMod) can be said to specialize in different segments of the prefabricated modular homes market, indicating that they are probably not engaged in intense competitive rivalry. Rapid-Built targets real estate speculators and mass-produces homes for subdivisions, while ModMod, run by architecture professors, focuses on architecturally designed individual kits for the buyers who often build on their lots. Given ModMod's niche approach and lower volume sales contrasted against Rapid-Built's focus on volume and speed for large-scale projects, it is unlikely for these companies to be direct, mutually acknowledged competitors, nor do they have high resource similarity or market commonality.

Answer 2

Option D. Are probably not engaged in intense competitive rivalry

Step-by-step explanation:

The reason is that the two companies are not affecting each others market because of their small size and as a result are not engaged in intense competitive rivalry. It is the characteristic of intense competitive rivalry that the companies involved affect each others pricing, product quality, etc decisions because the companies try to retain of grasp the market share of the other company. So due to the smaller sizes of the firm, it is clear that the two firms are not involved in intense competitive rivalry.