Advanced Business Strategy | Online Course Support

The diagram below shows three companies (A, B, and C) and their respective segments (1 and 2). Each company and segment has similar profitability. Which of the following best describes how an investor would prioritize each company, given he/she is prioritizing industry attractiveness in order to seek future growth?

 
 
 
 
 
 

An investor looking for growth would value first industry attractiveness and then the competitive advantage of the firm. Therefore, B is more valuable than A, and A is more valuable than C.

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