When new technology is developed by new entrants, incumbent firms face the very real possibility that they will be marginalized or eliminated.

Question

Quizplus · Accepted Answer

This statement is true. When new technology is developed by new entrants, it can disrupt the existing market and put incumbent firms at risk of being left behind or even driven out of business. This has been seen in various industries, such as music with the advent of digital downloads, and taxis with the rise of ride-sharing services.

When New Technology Is Developed by New Entrants, Incumbent Firms