When entrepreneurs develop new products, other companies also experience growth because they
a) they immediately copy the successful product.
b) create many companion products.
c) try to develop their own products.
d) attempt to improve the product.
Correct Answer: d) attempt to improve the product.
Correct Answer Explanation: d) attempt to improve the product.
➦ When entrepreneurs develop new products, other companies also experience growth because they attempt to improve the product.
➦ A new product can create a ripple effect in the marketplace, spurring growth and innovation across industries.
➦ The reason for this is that new products often introduce new features, functions, or benefits that challenge existing norms.
➦ In order to remain competitive or capitalize on new opportunities, other companies may improve their own products.
➦ Apple introduced the iPhone in 2007 as an example. Mobile apps, touch screens, and other innovative features introduced in this device revolutionized the mobile phone industry.
➦ Several other companies quickly followed suit, introducing touch screen smartphones with similar capabilities, such as Samsung, LG, and Google.
➦ Other automakers have also invested in and developed electric vehicle models as a result of Tesla’s introduction.
➦ As a result, electric vehicles have become more popular, and battery technology, charging infrastructure, and other related areas have improved.
➦ As other companies strive to improve their offerings and stay ahead of the curve, the creation of new products by entrepreneurs can lead to growth and innovation.
Why the Other Options are Incorrect?
a) “They immediately copy the successful product.”
➦ This option assumes that other companies simply copy the successful product, which is not always the case.
➦ While some companies may indeed try to replicate successful products, it’s not a guaranteed outcome, and it doesn’t necessarily lead to growth for those companies.
➦ Furthermore, outright copying may not be legal or ethical in many cases.
b) “Create many companion products.”
➦ While it’s possible that other companies may create companion products to complement the new product developed by entrepreneurs, this option doesn’t necessarily explain why those companies would experience growth.
➦ Developing companion products could be a strategy for some companies, but it’s not the only or primary reason for their growth.
c) “Try to develop their own products.”
➦ This option suggests that other companies respond to the development of new products by trying to develop their own.
➦ While competition may indeed drive some companies to innovate and develop new products, it doesn’t inherently lead to growth for those companies.
➦ Additionally, not all companies have the resources or capabilities to successfully develop new products in response to market trends.
➦ In contrast, option d) “attempt to improve the product” suggests that other companies may see an opportunity to enhance the existing product or offer similar products with added features or improvements.
➦ This can lead to growth as these companies invest in research, development, and marketing efforts to compete effectively in the market.
➦ Thus, option d) is the most logical and comprehensive explanation for why other companies may experience growth when entrepreneurs develop new products.
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I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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