Final answer:
Market structure is a crucial factor that strategic managers consider to understand how an industry is likely to evolve. It involves assessing market power, product differentiation, and barriers to entry.
Step-by-step explanation:
Market Structure and Strategic Management
One of the central questions that all strategic managers must address, regardless of the industry they work in, is how the industry is likely to evolve. This question pertains to the market structure of the industry, which is a multidimensional concept involving how competitive the industry is. Market structure is determined by factors such as market power (how much power each firm in the industry possesses), product differentiation (how similar each firm's product is to others in the industry), and barriers to entry (how difficult it is for new firms to enter the industry).