Question

It is challenging for firms to ""cross the chasm"" because ______.

A. Firms have difficulty moving from process to product innovation
B. Each stage of the industry life cycle features a different group of customers with different preferences and demands
C. FIrms are not able to deal with the technological challenges required
D. Transitioning between stages requires significant amounts of capital

Answer 1

Firms find it challenging to "cross the chasm" due to different customer preferences, capital requirements, and technological challenges.

Step-by-step explanation:

Firms find it challenging to "cross the chasm" because each stage of the industry life cycle features a different group of customers with different preferences and demands. This means that firms need to adapt and cater to the evolving needs and desires of their target market as they transition from one stage to another. The shift between stages often requires significant amounts of capital to fund the necessary changes and advancements in technology, products, and processes. Additionally, firms may face difficulties in dealing with the technological challenges required to stay competitive in the market.