Which of the following is MOST likely to qualify as a driving force?
A) Increases in price-cutting by rival sellers and the launch of major new advertising campaigns by one or more rivals
B) Successful introduction of innovative new products or new ways to market products
C) An increase in the prices of substitute products
D) Decisions on the part of industry's three biggest competitors not to pursue a strategy of striving to be the industry's low-cost leader
E) Decisions by one or more outsiders not to attempt to enter the industry

Question

Quizplus · Accepted Answer

A driving force is a change in the market that has a significant impact on competition. Option B, the successful introduction of innovative new products or new ways to market products, is most likely to qualify as a driving force because it disrupts the current market and can affect the ability of existing firms to compete. The other options are also important factors that can impact competition, but they do not necessarily qualify as driving forces.

Which of the Following Is MOST Likely to Qualify as a Driving