Question

Elridge Corp. has maintained certain competitive advantages for the last century as its business has continued to thrive. Recently, however, in large part caused by the expansion of the Internet, its competitive advantages are completely unsustainable in many situations in which it finds itself. Elridge is facing a transition between what two types of markets?

a.Fast-cycle to standard-cycle
b.Slow-cycle to fast-cycle
c.Slow-cycle to standard-cycle
d.Standard-cycle to fast-cycle

Answer 1

Elridge Corp. is transitioning from a slow-cycle market, where long-term competitive advantages are common, to a fast-cycle market characterized by rapid innovation and increased competition due to technology and globalization.

Step-by-step explanation:

Elridge Corp. is facing a transition from a slow-cycle market to a fast-cycle market. The shift from a slow-cycle market to a fast-cycle market typically results from advances in technology and the effects of globalization. Due to improvements in communications technologies, including the expansion of the internet, consumers and businesses can now easily connect globally, leading to increased competition. This competitive landscape encourages rapid changes, innovation, and shorter product life cycles, contributing to the fast-cycle market dynamic.

In contrast to the traditional markets where companies could rely on long-term competitive advantages such as brand name and economies of scale, fast-cycle markets are characterized by swift changes where competitive advantages are quickly eroded. Companies in these markets must consistently innovate and adapt to maintain their market position. Elridge Corp.’s previous sustainable advantages are now at risk, necessitating adaptation to a fast-moving and technology-driven marketplace.