In emerging economies, the LCD television industry is in that phase of the industry life cycle in which the previously increasing market demand becomes limited.The competitive intensity within the industry is high, and inefficient firms have begun to exit the industry.This has allowed only a few major companies to come out as cost leaders and hold the shrinking market.Which of the following stages of the industry life cycle is the LCD television industry currently in?

Question

Quizplus · Accepted Answer

The LCD television industry is in the shakeout stage in emerging economies. As the industry moves into the shakeout stage of the industry life cycle, the rate of growth declines. Given the large market size achieved from the growth stage, any additional market demand in the next stage is limited. Demand now consists of replacement or repeat purchases only. This limited market demand in turn increases competitive intensity within the industry.

In Emerging Economies, the LCD Television Industry Is in That