Why is it important for firms to forecast large increases in demand in the product market and move to satisfy that demand? to preempt rivals to improve tacit coordination between firms to implement a capacity-control strategy to prevent first-mover advantage How can a company improve market development when locating new market segments in which to compete? by preempting rivals by controlling capacity by capitalizing on the brand name by threatening a price war What leads an industry into a stage of decline? price wars leadership strategles have failed the total market begins to shrink too many new entrants When is the intensity of competition greatest in a declining industry? when exit barriers are high when decline is slow and gradual when the product is highily differentiated when fixed costs are low