A technology upgrading strategy is utilized by incumbent companies in a mature industry to deter entry by investing in costly upgrades that potential entrants would have trouble matching.

Question

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This statement accurately describes a common strategy used by companies in mature industries to deter new competition. By investing heavily in technology upgrades, incumbent companies can make it difficult for new entrants to catch up and compete effectively. This can help to protect the market position and profitability of the incumbent firms.

A Technology Upgrading Strategy Is Utilized by Incumbent Companies in a Mature