An example of a supporting industry that would help a firm gain a competitive advantage in the auto industry is:
A) Computer
B) Steel
C) Rubber
D) All of the above

Question

Quizplus · Accepted Answer

All three industries mentioned (computer, steel, and rubber) are examples of supporting industries that can help a firm gain a competitive advantage in the auto industry.

Computers are increasingly important in the auto industry due to the rise of connected cars and autonomous vehicles, so having access to cutting-edge technology in this field can be a significant advantage.

Steel is a vital component in the production of cars and trucks, and having reliable access to high-quality steel (or even owning a steel manufacturing facility) can reduce costs and increase efficiency.

Rubber is used extensively in tires and other automotive components, so synergy with rubber suppliers or even owning a rubber manufacturing plant can help a firm control costs, increase product quality, and reduce dependence on external suppliers.

Therefore, having a strong presence in all three supporting industries can provide a significant competitive advantage in the auto industry.

An Example of a Supporting Industry That Would Help a Firm