Which two factors determine the "competitive fate" of a declining industry?
A)The balance between capacity and output, and the nature of demand (the speed, predictability and uniformity of decline)
B)The nature of demand, and rivals' power of retaliation
C)Innovation and customers' speed of adoption
D)The balance between capacity and output, and industry structure

Question

Quizplus · Accepted Answer

The competitive fate of a declining industry is determined by the balance between capacity and output, which affects how companies manage excess capacity, and the nature of demand, which includes the speed, predictability, and uniformity of decline, influencing strategic decisions.

Which Two Factors Determine the "Competitive Fate" of a Declining