Question: How do companies adapt to changes in the market?

Sample Answer (The AREA technique):

Answer: Companies adapt to changes in the market by embracing innovation, conducting market research, and being agile in their decision-making processes.

Reason: Market conditions are constantly evolving due to factors like technological advancements, consumer preferences, and economic shifts. To stay competitive, companies need to anticipate and respond to these changes effectively.

Example: For instance, Netflix adapted to changing consumer preferences by shifting from a DVD rental service to a streaming platform, allowing them to thrive in the digital age.

Alternative: Another way companies adapt is through mergers and acquisitions, which can help them expand their product offerings, enter new markets, or consolidate resources to better navigate the changing landscape.