Future Clothes Inc

Multiple Choice

Future Clothes Inc., a publicly traded company, designs and manufactures wearable technology. What approach should Future Clothes take after a long period of horizontal integration in its industry? Assume that the industry is now stable and competitors have not made any major changes in price or marketing recently.

A) Compete based on price in order to drive out remaining competitors and create a monopoly.
B) Focus on research and development as a form of non-price competition.
C) Encourage new competitors to enter the market to improve competition.
D) Prepare to resist a hostile takeover by buying back as much stock as possible.