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At the last board meeting of Clearwater Electronics, the HR director discussed the threat of a new entrant in the computer chip market, Silicon Unlimited.

At the last board meeting of Clearwater Electronics, the HR director discussed the threat of a new entrant in the computer chip market, Silicon Unlimited. The HR director is concerned that Silicon Unlimited will try to poach some of Clearwater's top talent and wants the board's approval to make counteroffers to employees should this happen. Why is reducing the availability of top talent a good strategy to combat the threat of this new competitor?

  • It will cause Silicon Unlimited to look elsewhere for employees.
  • It will make it harder for Silicon Unlimited to invest in the human capital it needs to get off the ground.
  • It will create a barrier to entry for Silicon Unlimited and make it more difficult for the company to begin operations.
  • It will ensure that Silicon Unlimited does not obtain the resources it needs to be successful.

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