Question

What is meant by the concept "firm effect?" One excellent example is the "Apple Effect," where Apple's innovation and brand loyalty have a substantial influence on its stakeholders and the tech industry as a whole. The "Amazon Effect" is another well-known example, showcasing how Amazon's customer-centric strategy has redefined e-commerce and fulfillment.

Answer 1

The concept of "firm effect" refers to the impact that a particular company or brand has on its stakeholders and the industry as a whole. Examples such as the "Apple Effect" and the "Amazon Effect" illustrate how firms like Apple and Amazon have influenced market dynamics and consumer behavior.

Step-by-step explanation:

The concept of "firm effect" refers to the impact that a particular company or brand has on its stakeholders and the industry as a whole. It is characterized by the significant influence a firm exerts on market dynamics, consumer behavior, and the competitive landscape.

One example of the firm effect is the "Apple Effect," where Apple's innovation and brand loyalty have had a substantial influence on its stakeholders and the tech industry. Another example is the "Amazon Effect," showcasing how Amazon's customer-centric strategy has redefined e-commerce and fulfillment.