Which of the following statements is true of understanding an industry?
A)If managers do not properly define and understand their industry, they may be vulnerable to unseen competitors.
B)Truly understanding an industry often begins by taking a product-oriented view.
C)Firms should avoid choosing to compete in several markets at the same time.
D)Identifying an industry based on the product or service provided is the best way to understand the industry.

Question

Quizplus · Accepted Answer

If managers do not properly define and understand their industry, they may be vulnerable to unseen competitors. This statement is true as understanding the industry helps in identifying potential competitors and anticipating changes that can impact the business.

Which of the Following Statements Is True of Understanding an Industry