Question

Hilliard Pharmaceuticals and Ahrens Vitamins, Inc., have high market commonality, both geographically and in the market segments in which they compete. Hilliard, the number two firm in the industry, has undertaken a major strategic attack upon Ahrens, the market leader. Which of the following statements is most likely to be TRUE?
a. Ahrens will not respond aggressively since this is a strategic move and not a tactical action.
b. As the market leader, Ahrens has little to fear from an attack by Hilliard and will not expend organizational slack on a major response.
c. Ahrens will respond aggressively because of the high multimarket contact between Hilliard and Ahrens.
d. Ahrens will respond after a long delay as the nutrition supplement industry is a slow-cycle industry.

Answer 1

Answer: C. Ahrens will respond aggressively because of the high multimarket contact between Hilliard and Ahrens.

Explanation:

Ahrens will respond aggressively because of the high multimarket contact between Hilliard and Ahrens.

Ahrens Vitamins and Hilliard Pharmaceuticals have high Market commonality. They operate in the same geographical area and their target market is the same, meaning an increase in Profits for Hilliard Pharmaceuticals is a decrease in profits for Ahrens Vitamins, an attack from Hilliard will ave severe consequences for Ahrens Pharmaceuticals as they compete for the same target market.

Ahrens Vitamins will have to respond aggressively to attacks from Hilliard Pharmaceuticals in order to maintain their position in the market