How managers define an industry is critical to the formulation of a strategy for competing in it.

Question

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How managers define an industry shapes their understanding of market competition, customer needs and demands, and potential opportunities for growth and profitability. This impacts the development of a company's strategy as it determines how the firm positions itself within the industry and how it plans to gain a competitive advantage over its rivals. Thus, understanding the industry correctly is vital to formulating an effective strategy that ensures sustainable growth and success.

How Managers Define an Industry Is Critical to the Formulation