A company is considering entering the meal-kit delivery indu…
A company is considering entering the meal-kit delivery industry. Its analysis finds:• Customers can switch easily among meal-kit providers.• Large grocery chains are expanding prepared-meal and meal-kit offerings.• Restaurant delivery and grocery shopping provide alternatives.• The company would depend on a small number of large food distributors.• Starting a small meal-kit company is relatively inexpensive, although achieving national scale is difficult.The CEO argues:“Demand for meal kits is growing rapidly, so the industry should be attractive.”What additional question would most directly address the CEO’s reasoning?