When an industry is subject to externally generated changes,the firms which are most likely to establish a competitive advantage are:
A)Those with the highest market share
B)Those that that respond most quickly to the change and have the resources and capabilities that are most closely aligned to the emerging success factors
C)Those with the greatest agility and capacity for innovation
D)A combination of (a), (b),and (c).

Question

Quizplus · Accepted Answer

Having a high market share does not necessarily mean that a firm will be able to adapt to externally generated changes. The firms that respond quickly and have resources and capabilities aligned with emerging success factors are more likely to establish a competitive advantage. Also, agility and capacity for innovation are essential for success in dynamically changing industries. Therefore, option (B) is the most suitable choice.

When an Industry Is Subject to Externally Generated Changes,the Firms