To be successful and to survive the shakeout stage of the industry life cycle, a firm should
A) charge higher prices than its competitors.
B) focus on product innovation rather than process innovation.
C) gain economies of scale.
D) shift from price to non-price competition.

Question

Quizplus · Accepted Answer

Key success factors during the shakeout stage are the manufacturing and process engineering capabilities that can be used to drive costs down. Generally, the larger firms enjoying economies of scale are the ones that survived the shakeout phase as the industry consolidated and most excess capacity was removed.

To Be Successful and to Survive the Shakeout Stage of the Industry