To succeed in a hypercompetitive industry, companies must be willing to
A) cut prices below marginal costs.
B) pursue market share instead of profits.
C) operate in the ethical gray zone.
D) cannibalize their own successful product lines.
E) reduce spending on research and development.

Question

Quizplus · Accepted Answer

Cannibalizing a successful product line is a strategy where a company intentionally creates a new product that directly competes with its existing product. While this may seem risky, it allows the company to stay ahead of competitors by constantly innovating and catering to changing customer preferences. By doing so, the company can maintain or increase its market share and potentially push out competitors who cannot keep up with the pace of innovation.

To Succeed in a Hypercompetitive Industry, Companies Must Be Willing