Ziff Corp. was a leading electronics firm for about three decades. As new competitors entered the industry, Ziff Corp's market share dropped. The managers at Ziff Corp. refuse to change any of their strategies, as they believe that their existing strategies will help them become one of the market leaders as they did in the past. This scenario is an example of _____.
A) distinctive competence
B) strategic dissonance
C) strategic uncertainty
D) competitive inertia

Question

Quizplus · Accepted Answer

This scenario is an example of competitive inertia, which is the tendency of a firm to continue its existing strategies even when they are no longer effective. The managers at Ziff Corp. are resisting change and refusing to adapt to new market conditions, which can lead to a decline in their market share.

Ziff Corp Was a Leading Electronics Firm for About Three Decades