According to the industrial organization (I/O) model, when a firm is unable to control conditions in the external environment, what happens?
A) The company will be able to differentiate itself from competitors in a variety of ways.
B) The company's strategic options will be limited.
C) The company's strategic options will be unlimited.
D) The company will be unable to achieve a sustainable competitive advantage.

Question

Quizplus · Accepted Answer

According to the I/O model, a firm's strategic options will be limited if it is unable to control external conditions. This is because the external environment plays a significant role in determining a firm's competitiveness and profitability, and firms must adapt their strategies to fit the external environment. If a firm is unable to control external conditions, it will have fewer strategic options available to it.

According to the Industrial Organization (I/O) Model, When a Firm