Question at position 1 An electronics firm patents an innovative battery that lasts twice as long as existing models. It then lobbies for stricter environmental standards that make older technologies less competitive. This strategy mainly reflects an effort to:lower operational expensesform partnerships with rivalsincrease the bargaining power of supplierscreate barriers that make market entry harder for competitors

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Question at position 1 An electronics firm patents an innovative battery that lasts twice as long as existing models. It then lobbies for stricter environmental standards that make older technologies less competitive. This strategy mainly reflects an effort to:lower operational expensesform partnerships with rivalsincrease the bargaining power of supplierscreate barriers that make market entry harder for competitors

BlackTom AI · Accepted Answer

The question describes a scenario where a firm patents a superior battery and then lobbies for stricter environmental standards that disadvantage older technologies. This is a strategic move to shape the competitive landscape rather than directly cutting costs, forming alliances, or increasing supplier power.
Option 1: 'lower operational expenses' — While reducing costs is a common business objective, the described action focuses on influencing the regulatory environment to advantage the firm's patent by hindering rivals’ older technologies, not on cutting internal expenses.
Option 2: 'form partnerships with rivals' — The scenario does not mention collaboration or coalitions with competitors; instead, it suggests regulatory influence to blunt competition, which is the opposite of forming partnerships.
Option 3: 'increase the bargaining power of suppliers' — There is no reference to suppliers or supply chain bargaining in the description. The move targets environmental standards to block competitor technologies, not to shift leverage with suppliers.
Option 4: 'create barriers that make market entry harder for competitors' — This best captures the essence of the strategy. By patenting a superior technology and lobbying for stricter standards that penalize older technologies, the firm raises entry barriers, slows competitors from keeping up, and protects its superior position in the market.
In summary, the core tactic is regulatory manipulation to sustain a competitive moat, which aligns with creating entry barriers for others rather than the other listed options.

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