Which of the following is not an assumption of traditional perspectives on industry analysis?
A) Changes in the dimensions of industries are relatively unimportant
B) The size and shape of the competitive space are relatively stable over time
C) Industries do not remain in equilibrium
D) The focus of competition remains fixed on traditional patterns of interaction between participating firms

Question

Quizplus · Accepted Answer

Traditional perspectives on industry analysis, such as Porter's Five Forces, generally assume that industries are relatively stable and predictable over time. This includes assumptions that the size and shape of the competitive space do not change significantly (B), and that the focus of competition remains on traditional patterns of interaction (D). The statement that industries do not remain in equilibrium (C) contradicts these traditional assumptions, as they typically assume a level of equilibrium or stability within industries.

Which of the Following Is Not an Assumption of Traditional