Question

The strategy in a mature industry to invest in infrastructure that would be cost-prohibitive for new entrants to deter new competition from entering the market is known as: A. product development. B. capacity control. C. market penetration. D. technology upgrading. E. product proliferation.

Answer 1

Answer: Option D  

Explanation: In simple words, technology upgrading refers to the process in which a firm intensely changes the level of technology it is using for its operations. In such a process the organisation implements a more advanced technology so that it can enhance the operational activities within.

Technology up gradation is a necessity in today's competitive business environment but if implemented in a right way it can give an organisation a strong competitive advantage which will open new doors to success.

     For example automobile industries upgraded their technology to a higher level which made the operation at such a high scale that it became an oligopoly industry.

An oligopoly industry is the one in which there are few firms operating at a high scale with difficulty in entry due to heavy investments.