CS Professional · Strategic Management and Corporate Finance · Competitive Positioning
Which of the following is a mobility barrier that protects a strategic group from entry by firms in other groups?
Heavy investment in an established brand and a nationwide distribution network is a mobility barrier. Such assets are costly and slow to replicate, so firms from other strategic groups find it hard to move in and the existing group's position stays protected.
- AA firm's decision to declare a dividend
- BHeavy investment in an established brand and a nationwide distribution networkCorrect
- CThe date of the company's annual general meeting
- DThe appointment of a company secretary
Explanation
Mobility barriers are factors such as brand strength, distribution reach, technology and scale that make it costly for a firm to shift into another group. Dividend declaration, AGM timing and appointing a secretary do not restrict strategic movement between groups.
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