Explain about the profit sanctuaries

Question

Explain about the profit sanctuaries.

Answer 1

1. Profit sanctuaries are country markets in which a company derives considerable profits be-cause of its protected or powerful market position.

2. Companies that compete globally are probable to have extra profit sanctuaries than companies that compete in just a few country markets; a domestic-only competitor can have only one profit sanctuary.

Companies with protected, large profit sanctuaries — country markets in which a company derives considerable profits because of its protected or powerful market position — have competitive benefit over companies that do not have a protected sanctuary. Companies with two or more profit sanctuaries have a competitive benefit over companies with a single sanctuary.