List any three of the reasons why the firm would continue to exist beyond the point where its products have become obsolete.
To answer this question, there are a few steps you can follow.
Step 1: Understand the concept
First, familiarize yourself with the concept of firm's existence beyond the point of product obsolescence. In general, a firm may continue to exist even when its products become obsolete, for various reasons.
Step 2: Analyze reasons
Next, we need to analyze and identify some of these reasons. Here are three potential reasons why a firm might continue to exist beyond product obsolescence:
1. Diversification: A firm can diversify its products and services to adapt to changing market demands. By expanding into new areas and introducing innovative offerings, the firm can remain competitive and relevant, even if its original products become obsolete. Diversification allows the firm to tap into new revenue streams and maintain market presence.
2. Brand Reputation: If a firm has established a strong brand reputation, it can leverage it to remain relevant even when its products become obsolete. Consumers may continue to trust the company due to its past successes, leading to ongoing customer loyalty and market demand for newer products or services offered by the same firm. Brand reputation can act as a competitive advantage, helping the firm sustain its existence.
3. Intellectual Property: Firms that possess valuable intellectual property (such as patents, copyrights, or trade secrets) can continue to generate revenue beyond product obsolescence. They can license or sell their intellectual property rights, allowing other companies to develop and commercialize new products based on the firm's innovative ideas. By capitalizing on their intellectual assets, firms can maintain a presence in the market, even if their original products have become obsolete.
Step 3: Present your answer
To answer the question directly, you could say something like this:
"Three reasons a firm might continue to exist beyond the point where its products have become obsolete are diversification, leveraging brand reputation, and capitalizing on valuable intellectual property rights."
Remember, these reasons are not exhaustive, and there may be other factors that could contribute to a firm's existence beyond product obsolescence.