4 Tuainstructurecon Question 28 2 pt Kappa Pharmaceuticals a

4 Tuainstructure.con Question 28 2 pt: Kappa Pharmaceuticals and Lambda Vitamins, Inc., have high market commonality, both geographically and in the market segments in which they compete. Kappa, the number two firm in the industry, has undertaken a major strategic attack upon Lambda, the market leader. Which of the following statements is most likely to be TRUE? O Lambda will respond after a long delay as the nutrition supplement industry is a slow-cycle industry. Lambda will respond aggressively because of the high multimarket contact between Kappa and Lambda. O As the market leader, Lambda has little to fear from an attack by Kappa and will not expend organizational slack on a major response. ?Lambda will not respond aggressively since this is a strategic move and not a tactical action. Question 29 2 pts Which of the following is an example of a strategic action?

Solution

The correct choice is :- Lambda will respond aggresively because of the high multimarket contact between Kappa and Lamba

Explanation : - Firms with high market commonality have overlapping products and are clearly direct and mutually acknowledged competitors. Under the condition of market commonality, the probability is high that the attacked firm will respond aggresively to its competitor\'s action in an effort to protect its position in one or more markets.