If an Indian firm finds that a foreign multinational is entering the Indian market with new substitutes, it can prepare itself to meet the threat by adopting which of the following measures:

(A) Improving the quality of the products

(B) Reducing cost of production

(C) Engaging in aggressive advertising and making false claims

(D) Upgrading technology

Choose the correct answer from the options given below:

(A) Improving the quality of the products -> Makes the firm more competitive by offering better value to customers

(B) Reducing cost of production -> Allows competitive pricing while maintaining profitability

(C) Engaging in aggressive advertising and making false claims -> Illegal and unethical practice that can lead to legal action and loss of reputation (Recall Consumer Protection Act)

(D) Upgrading technology -> Enhances efficiency, reduces costs, and improves product quality

Option (C) must be excluded as making false claims violates advertising laws and business ethics.

Hence, the correct answer includes measures (A), (B), and (D) only.