A company wants to determine how industry effects have affected its profitability.Which of the following elements should the company focus on?
A) the barriers to entry and exit within the industry
B) the pricing method opted by the managers to face competition within the industry
C) the brand strategy the managers adopt to establish the firm in the industry
D) the strategic position the firm pursues within the industry

Question

Quizplus · Accepted Answer

Industry effects describe the underlying economic structure of the industry. They attribute firm performance to the industry in which the firm competes. The structure of an industry is determined by elements common to all industries such as entry and exit barriers, number and size of companies, and types of products and services offered.

A Company Wants to Determine How Industry Effects Have Affected