Fran Owns Consolidated Auto Parts, a Company That Got Its

question 33

Multiple Choice

Fran owns Consolidated Auto Parts, a company that got its start making auto parts related for hybrid vehicles, but her firm has had difficulty establishing itself as a maker of parts for the more-profitable internal combustion engine. What is most likely contributing to Consolidated's problem in this area?

• A) Newcomers cannot use existing assets or reconfigure their value chains.
• B) New competitors usually ignore stakeholders who are not stockholders.
• C) It is difficult for outsiders to gauge which stage of the "life cycle" that industry is in.
• D) Entry barriers usually protect the incumbent players in a profitable industry.