Growth in an embryonic industry is slow because of buyers' unfamiliarity with the industry's product, high prices due to the inability of companies to reap any significant scale of economies, and poorly developed distribution channels.

Question

Quizplus · Accepted Answer

Embryonic industries are in the early stages of development and are still trying to establish themselves in the market. This often means that buyers are not yet familiar with the product being offered, which results in slow growth. Additionally, companies in embryonic industries have not had the opportunity to benefit from significant scale of economies, which can help to reduce costs and lower prices. Finally, distribution channels may not be well established, making it more difficult to get products to market efficiently. All of these factors contribute to slower growth in embryonic industries.

Growth in an Embryonic Industry Is Slow Because of Buyers