With the aid of a strategic group map for the pizza segment of the food service industry, one canMultiple Choiceidentify easily the entry and exit barriers for each strategic group and intersegment competition with other casual restaurants.measure accurately whether across-group rivalry among pizza establishments is stronger than within-group rivalry, and vice versa.identify which competitive forces are strong and which are weak for pizza restaurants.reveal which pizza establishments are close competitors and which are distant rivals, and that not all positions on the map are equally attractive.pinpoint precisely which pizza restaurants are in profitable strategic groups and which are not.

Not all positions on a strategic group map are equally attractive becauseQuestion 1AnswerA.small strategic groups are always less profitable than large strategic groups.B.entry and exit barriers are different for each strategic group.C.across-group rivalry is always weakest at the outer edge of the strategic group map.D.industry driving forces and competitive pressures favor some groups and disadvantage others.E.key success factors are substantially different for differently positioned industry participants.

(Last Word) Restaurants operate in monopolistically competitive markets. What characteristics allow them to differentiate their products?

Suppose you are the manager of a pizza restaurant chain. You are planning to open new outlets in Mumbai and New Delhi. You know the prices of the cheapest pizza from other outlets in each city. You are given the task of setting competitive prices for your menu.

If Slice-Of-Life Pizza can get its restaurant to be used in an upcoming movie, it would be a great form ofMultiple Choiceproduct placement.a promotional placement.a promotional mix.negative advertising.fraud.

The techniques that this pizza business is using makes one believe that they are trying toMultiple Choicedifferentiate their product.be the low-cost leader.operate efficiently.attract old customers.focus on only one type of person.