An important determinant of the strength of the competitive forces in an industry is the changes that take place in it over time.

Question

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The changes that occur in an industry over time can have a significant impact on the competitive forces within it. For example, the emergence of new technologies or the entry of new competitors can increase competition and weaken the position of existing firms. Similarly, changes in consumer preferences or demographic trends can disrupt established market segments and create new opportunities or threats for industry players. Therefore, it is important for companies to monitor and adapt to these changes in order to maintain their competitive advantage.

An Important Determinant of the Strength of the Competitive Forces