If an industry has a stable environment and firms pursue similar strategies,
A)firms with similar resources and capabilities should have similar profit rates.
B)firms with similar resources and capabilities should have similar structures.
C)firms without similar resources and capabilities will have left the industry.
D)strategists may as well shoot themselves, this industry is so boring.

Question

Quizplus · Accepted Answer

In a stable environment with firms pursuing similar strategies, the competitive forces are not likely to vary significantly. In such a scenario, competition is likely to be based on efficiency and cost-effectiveness, and firms with similar resources and capabilities should have similar profit rates. Therefore, A is the best choice. B is incorrect because even if firms have similar structures, it may not guarantee similar profit rates. C is incorrect because it assumes that only firms with similar resources and capabilities survive, which may not be true. D is irrelevant and inappropriate.

If an Industry Has a Stable Environment and Firms Pursue