Aries Inc. is a large a computer manufacturer which has been in the market for several years. Many other companies have started manufacturing compact, portable gadgets to keep up with the new technological developments. Aries, however, has been reluctant to adopt these changes because it thinks that its products are already popular. Which of the following concepts is illustrated in the scenario?
A)Competitive dissonance
B)Anticompetitiveness
C)Competitive inertia
D)Customer inertia
E)Opportunism

Question

Aries Inc. is a large a computer manufacturer which has been in the market for several years. Many other companies have started manufacturing compact, portable gadgets to keep up with the new technological developments. Aries, however, has been reluctant to adopt these changes because it thinks that its products are already popular. Which of the following concepts is illustrated in the scenario?
A)Competitive dissonance
B)Anti­competitiveness
C)Competitive inertia
D)Customer inertia
E)Opportunism

Quizplus · Accepted Answer

The scenario illustrates the concept of competitive inertia, which refers to a company's reluctance to change or adapt to new market conditions due to its success in the past. Aries Inc. thinks that its products are already popular and therefore, it is unwilling to adopt the new technological developments. This situation represents competitive inertia.

Aries Inc Is a Large a Computer Manufacturer Which Has Been