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Consulting Case Interview Practice Questions

Category - Strategy

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WePro has created a monopoly in the Nigindia sugar market by acquiring its competitors. Which of the following might keep it from fully leveraging its market power?

Cannibalization
Increased demand for coffee
Splenda
Barriers to entry
Switching costs

Explanation

Answer: c - Splenda is a substitute good for sugar. If the cost of sugar is too high, Nigindians might switch to the artificial sweetener.

Key Takeaway: Always consider potential substitutes when assessing a market structure. For instance, riding a train or driving is a substitute for flying.

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Consulting Case Interview Practice Questions

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Consulting Case Interview Practice Questions

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