Schumpeter's Process of "Creative Destruction" Challenges Porter's Five Forces of Competition

question 16

Multiple Choice

Schumpeter's process of "creative destruction" challenges Porter's five forces of competition framework by:

• A)Introducing concepts of renewal and rebirth into the analysis of industrial change
• B)Recognizing the cooperation is as important in business as competition
• C)Proposing that competitive behavior determines industry structure rather than the other way round
• D)Viewing competition is essential for the renewal of mature and declining industries

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Definitions:

Maximum Number

The highest value in a given set or range.

Matter

Anything that occupies space.

Mass

A property of physical objects that measures the amount of matter in an object, affecting its resistance to acceleration under a force.

Occupies Space

A characteristic of matter that refers to the requirement of physical space for an object or substance to exist.