Final answer:
Firms must adapt and respond proactively to changes in the environment to avoid failing in the marketplace.
Step-by-step explanation:
Even well-established firms can fail in the marketplace if they do not adapt and respond proactively to changes in the environment. This means that they need to be flexible and adjust their strategies based on market conditions and trends. For example, they may need to expand or reduce production, set the price based on competition and customer demand, open or close facilities based on market demand, hire or lay off workers based on business needs, and start selling new products or stop selling existing ones to meet changing customer preferences.