Equity Investments - Equity Investments Section 2
- Option : B
- Explanation : For a successful cost leadership strategy, a company should have efficient production systems and tight cost controls. The cost of capital should be low.
- Option : C
- Explanation : The other two require no investment to expand their business whereas for a grocery store, investment on shelves and other things would be required.
- Option : A
- Explanation : An industry with fierce competition and little or no differentiation in products is most likely categorized as fragmented with weak pricing power.
- Option : B
- Explanation : An industry experiencing industry consolidation, high barriers to entry and little or no growth is in maturity stage.
