Question

When any two firms have both a high degree of market commonality and highly similar resources, a ______________ threat is present.

Answer 1

Answer: stronger, competitive

Explanation:

When there is a high identical resources base and and a high degree of market commonality between two firms ,this show that there is a stronger and competitive threat. It should be noted that despite this threat, there may be no competitive action.

A rival in the market may not want to attack a company that shares identical resources base because it can result into an intense battle. Also, attacking them can lead to more motivation and thereby produce a better quality product.