Value is created when the industry is profitable and the firm is in a disadvantaged competitive position within the industry.

Question

Quizplus · Accepted Answer

Value is created when the firm is in an advantageous competitive position within the industry, not a disadvantaged one. When the industry is profitable, all firms within that industry have the potential to create value, but it's the ones with the competitive advantage that are most likely to do so.

Value Is Created When the Industry Is Profitable and the Firm