The last stage of a hypercompetitive industry is reached when the remaining large global competitors
A) raise entry barriers.
B) move into untapped markets.
C) attack the strongholds of other firms.
D) compete on cost and quality.
E) work their way to a situation of perfect competition in which no one has any advantage and profits are minimal.

Question

Quizplus · Accepted Answer

The last stage of a hypercompetitive industry is characterized by intense competition and pressure on profit margins. At this stage, the remaining large global competitors have likely exhausted all possible strategies for gaining a competitive advantage and are now competing on cost and quality. Eventually, they will have worked their way towards a situation of perfect competition where no one has any advantage and profits are minimal. This is the ultimate stage of a hypercompetitive industry where firms may either merge or exit the market altogether.

The Last Stage of a Hypercompetitive Industry Is Reached When