Describe the Red Queen Effect How can a firm avoid this prob

Describe the \"Red Queen Effect.” How can a firm avoid this problem?

Solution

The situation in which we try to improve themselves inorder to top the competition but even after much trails we will not succeed and at the same time if we stop trying we will fall much low in the competition is called red queen effect. It effects most of the businesses at one time or the other. Inorder to overcome this effect a business needs to keep on coming up with new techniques and must not maintain the same technique for long time. This gives the company the edge in the competition which will help in coming out from this effect.