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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.

  1. AA firm's decision to declare a dividend
  2. BHeavy investment in an established brand and a nationwide distribution networkCorrect
  3. CThe date of the company's annual general meeting
  4. 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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