Identify a true statement about the decline stage of an industry's life cycle.
A)The market size of the product increases significantly during this stage.
B)The increasing market growth leads to a decrease in competitive rivalry.
C)Some firms try to minimize competition and consolidate the industry by buying rivals.
D)A standard emerges that signals the market's agreement on a common set of engineering and design features.

Question

Quizplus · Accepted Answer

During the decline stage of an industry's life cycle, the market typically shrinks and becomes less profitable, leading some firms to try to minimize competition and consolidate the industry by buying rivals. This can lead to a concentration of market power among a few dominant firms. Option A is incorrect because the market size of the product decreases in the decline stage, not increases. Option B is incorrect because increasing market growth would be more characteristic of the growth stage, not the decline stage. Option D is incorrect because the emergence of a standard would be more characteristic of the maturity stage, not the decline stage.

Identify a True Statement About the Decline Stage of an Industry's