Final answer:
A strategic inflection point occurs when a firm faces major changes in its competitive environment.
Therefore, the statement is true.
Step-by-step explanation:
A strategic inflection point occurs when a firm faces major changes in its competitive environment. This can include technological advancements, changes in consumer behavior, industry regulations, or new market entrants. It is a critical juncture for a company as it requires strategic decisions to adapt and remain competitive.
For example, the rise of e-commerce and online retail disrupted traditional brick-and-mortar stores, forcing them to adapt by investing in their own online platforms or changing their business models. This major change in the competitive environment represents a strategic inflection point for these companies.
Summary:
A strategic inflection point occurs when a firm faces major changes in its competitive environment, requiring strategic decisions to adapt and remain competitive.