Which of the following is a benefit of innovation in an industry?
A) It allows smaller companies the ability to compete with large, established companies by reducing entry barriers and lowering fixed costs of production.
B) It breaks the life cycle pattern and causes growth so rapid it causes stages to be skipped altogether.
C) It emphasizes the importance of industry structure.
D) It secures the profitability of strategic groups within an industry.
E) It increases the barriers to entry to reduce rivalry and competition.

Question

Quizplus · Accepted Answer

Innovation can often lead to new technology, processes, or products that can lower costs and reduce barriers to entry, allowing smaller companies to compete with larger, established competitors. This can lead to increased competition and overall benefits to the industry as a whole.

Which of the Following Is a Benefit of Innovation in an Industry