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21 May, 03:04

The strategy in a mature industry to invest in infrastructure that would be cost-prohibitive for new entrants to deter new competition from entering the market is known as: A. product development. B. capacity control. C. market penetration. D. technology upgrading. E. product proliferation.

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  1. 21 May, 03:57
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    Answer: Option D

    Explanation: In simple words, technology upgrading refers to the process in which a firm intensely changes the level of technology it is using for its operations. In such a process the organisation implements a more advanced technology so that it can enhance the operational activities within.

    Technology up gradation is a necessity in today's competitive business environment but if implemented in a right way it can give an organisation a strong competitive advantage which will open new doors to success.

    For example automobile industries upgraded their technology to a higher level which made the operation at such a high scale that it became an oligopoly industry.

    An oligopoly industry is the one in which there are few firms operating at a high scale with difficulty in entry due to heavy investments.
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