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:

Mobilizes

To prepare and organize (groups, resources, etc.) for a purpose or action, especially in a context of urgency or conflict.

Somatic Nervous System

A component of the peripheral nervous system associated with the voluntary control of body movements through the action of skeletal muscles.

Spinal Reflexes

Spinal reflexes are automatic, involuntary movements or actions of the body that are initiated in the spinal cord without the involvement of the brain, such as the knee-jerk reaction.

Automatic

Processes or actions that are performed without conscious thought or intention, often as a result of learning or habituation.