In a declining industry
A) product-differentiation efforts are focused on product refinement as a basis of product differentiation.
B) firms that are first movers can gain product-differentiation advantages based on perceived technological leadership.
C) highly differentiated firms may be able to gain product-differentiation advantages by preempting strategically valuable assets.
D) highly differentiated firms may be able to discover a viable market niche that will enable them to survive despite the overall decline in the market.

Question

Quizplus · Accepted Answer

In a declining industry, highly differentiated firms may be able to discover a viable market niche that will enable them to survive despite the overall decline in the market. Option A is not appropriate as refining the product will not be sufficient to differentiate it significantly. Option B is not appropriate as being a first-mover may not be advantageous during a declining industry. Option C is not appropriate as preempting strategically valuable assets may not be beneficial if the assets are also declining.

In a Declining Industry