Question

A few years ago, when Internet sales took off, the major automobile manufacturers had to decide whether they would sell directly or through their dealership network. In this situation a change in the industry's __________________ environment created a potential change in sales strategy.

A. Technological
B. Social and cultural
C. Political and legal
D. Ethical
E. Natural

Answer 1

The scenario of automobile manufacturers considering online sales points to a change in the industry's technological environment, requiring a potential update in sales strategies due to increased competition and widespread Internet use.

Step-by-step explanation:

In the scenario where major automobile manufacturers had to decide whether to sell directly or through their dealership networks due to Internet sales, we can see that a change in the industry's technological environment created a potential change in sales strategy. The rise of the Internet and e-commerce platforms means that companies can now sell products directly to consumers all over the world, increasing competition and changing traditional business models. This technological advancement has led to significant shifts in market definitions, demanding that businesses adapt their strategies to maintain competitiveness.