2022 302 Test Guide & 302 Hot Questions - BIG-IP DNS Specialist Reliable Test Labs - Championsgroup

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Exam Code: 302

Exam Name: BIG-IP DNS Specialist

Certification Provider: F5

Related Certification: BIG-IP DNS Specialist

302 BIG-IP DNS Specialist

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A firm may decide to enter a new business by creating a new entity. After undertaking a structural analysis, the internal entrant chooses an appropriate target industry. The most likely target is an industry in which the entrant:
A. Can raise mobility barriers after entry.
B. Will not have to compete with a dominant firm that seeks to protect the industry.
C. Will have to develop its own distribution network.
D. Calculates that the costs of retaliation to existing firms are less than the benefits.
Answer: A
A distinctive ability to influence industry structure is another basis for earning above-average profits. Thus, an ability to raise mobility barriers after the firm has entered the industry is a reason to target that industry. Moreover, a firm may be able to recognize that entering a fragmented industry will start a process of consolidation and increased entry barriers.

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