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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from Business Analysis TrainingChapter 4 / Lesson 6