Question
You are about to prepare a set of projections for a business that is operating in a highly competitive, mature industry. Sales are growing broadly
You are about to prepare a set of projections for a business that is operating in a highly competitive, mature industry. Sales are growing broadly in line with the economy, and this is expected to continue. Barriers to entry in the industry mean that no new entrants are expected, and the sector has no dominant players. Which strategy is likely to have the greatest impact when setting your scenario?
A) The industry is expected to begin to enter the declining stage within the next 7 to 10 years.
B) The economy is expected to improve over the next 3 years.
C) Management advises it is seeking to improve gross margin by increasing prices.
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