Conditions of Demand,factors That Help Determine the Strategic Attractiveness of Declining

question 21

Multiple Choice

Conditions of demand,factors that help determine the strategic attractiveness of declining product markets,include demand characteristics such as the rate and the certainty of sales decline.What observation is true of the market conditions being affected by these characteristics?

• A)A slow and gradual decline allows an orderly withdrawal of weaker competitors.
• B)Overcapacity is more likely to become excessive and lead to predatory competitive behaviour.
• C)Competitors who remain are less likely to make profits than in a quick or erratic decline.
• D)Reduction of capacity is more likely to be erratic when industry managers believe market decline is predictable.

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Definitions:

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