Which of these statements regarding the industry life cycle is correct? A. It points out the need...

Question:

Which of these statements regarding the industry life cycle is correct?

A. It points out the need to maintain a differentiation advantage and a low-cost advantage simultaneously.

B. Trends suggested by the market life cycle model are generally not reversible or repeatable.

C. It has important implications for company generic strategies, functional areas, value-creating activities, and overall objectives.

D. Part of the power of the market life cycle is its ability to serve as a short-run forecasting device.

Industry Life Cycle:

The industry life cycle comprises of five stages which an industry goes through from its inception to its decline namely introduction, growth, shakeout, maturity, decline and snack-time. The life cycle describes the evolution of an industry, its journey from the development of new products through the growth & maturity and to its eventual decline as the demand eventually wanes.

Answer and Explanation:

Ans. C. It has important implications for company generic strategies, functional areas, value-creating activities, and overall objectives.

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Industry Analysis for Business Plans

from Business Analysis Training

Chapter 4 / Lesson 6
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