Final answer:
Armando is involved in Evaluating opportunities, which includes monitoring competitive activities and market conditions to identify potential areas for innovation and competitive advantage. This practice is vital for maintaining a strong position in a market characterized by monopolistic competition and strategic competitive behavior.
Step-by-step explanation:
Armando, the CEO of a medical supply company, is engaging in a strategic business practice by staying informed about his competitors' activities. By reading press releases, advertisements, news articles, attending trade shows, and checking on new competitive products, Armando is most likely involved in E) Evaluating opportunities. This process involves assessing current market conditions, understanding competitive moves, and looking for areas where his company could potentially innovate or improve to gain a competitive edge. It is a key component of strategic management, which ensures that the company stays ahead or at least keeps pace with industry changes and competitive threats. Understanding the dynamics of monopolistic competition is crucial for business leaders like Armando. When competitors gain success through positive economic profits, it signals others to enter the market, potentially offering new or improved products and services. Therefore, being vigilant about market activities helps in assessing whether new competition might erode market share or present opportunities for collaboration, acquisition, or differentiation. For instance, a gas station might consider introducing new services like a carwash if other gas stations in the vicinity begin offering additional attractions such as coffee shops. Comprehending competitive behavior is also relevant to Armando's situation. Competitors may engage in various strategies to outdo one another, like cutting prices, enhancing product quality, or building a robust brand image. By consistently observing and analyzing the competitive landscape, Armando can make informed decisions regarding his company's strategic direction and tactics.