Question

< Previous Question 13 Next > Which of the following is not a major question to ask in assessing a company's industry and competitive environment? Is the industry outlook conducive to good profitability? How many companies have entered the industry in the past year and how many have exited the industry? What strategic moves are rivals likely to make next? What forces are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability? O What are the key factors for future competitive success?

Answer 1

Answer: How many companies have entered the industry in the past year and how many have exited the industry?

Explanation:

It is not a major question to ask about the companies who have entered and exited the industry in past years while assessing the industry and competitive environment. There are frequent changes in every industry and the past data on the number of companies will not provide any idea about the current competition. Profitability and factors of future competitive success are important factors while assessing the competitive environment. The strategic moves rivals are likely to make next is also a question to assess the competition. The forces that are driving the changes and their impact on competitive intensity and profitability are also a concern while assessing the industry and competition. Hence all these include major questions in assessing a company’s industry and competitive environment and the answer is the second option.