Which of the following is most likely to qualify as a driving force?
A) Increases in price-cutting by rival sellers and the launch of major new advertising campaigns by one or more rivals
B) Wildly successful introduction of innovative new products by one or more industry rivals that force other rivals to respond quickly or lose a major share of their customers to the innovating rival(s)
C) An increase in the prices of substitute products
D) Decisions on the part the industry's three biggest competitors not to pursue a strategy of striving to be the industry's low-cost leader
E) Decisions by one or more outsiders not to attempt to enter the industry

Question

Quizplus · Accepted Answer

The introduction of innovative new products by industry rivals is likely to force other rivals to respond quickly to avoid losing market share, making it a driving force for the industry. Increases in price-cutting or major advertising campaigns by rivals are not necessarily driving forces, as they may be short-term effects that do not significantly alter the industry's overall direction. An increase in the prices of substitute products may be a driving force, but it is not clear from the information provided whether this is the case. Decisions by competitors not to pursue a low-cost leadership strategy or by outsiders not to enter the industry are not necessarily driving forces, as they may not have a significant impact on the industry's overall direction.

Which of the Following Is Most Likely to Qualify as a Driving