The greater the extent to which a firm's assumptions and hypotheses accurately describe how the competition in the industry is likely to evolve, and how that evolution can be exploited to earn a profit, the more likely it is that a firm will gain a competitive advantage from implementing its strategies.

Question

Business

Jadiel Hatfield

29 March, 09:13

The greater the extent to which a firm's assumptions and hypotheses accurately describe how the competition in the industry is likely to evolve, and how that evolution can be exploited to earn a profit, the more likely it is that a firm will gain a competitive advantage from implementing its strategies.

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Answers (1)

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Rebecca Delacruz · Answer 1

The statement is true.

Explanation:

The first stage of a business competitive strategy is to assess the company's internal strenghts and weaknesses. And the second step is to assess the competitor's strenghts and weaknesses.

If after the second step, the competitors are diagnosed well, the strategy that the company devises to gain a competitive advantage are likely to be succesful, simply because the strategy was devised while having an accurate profile of the competing firms.