The strategic objective of businesses during the shakeout phase of the industry life cycle will primarily be to
A) move toward product innovations and away from process innovations.
B) survive by drawing on "deep pockets."
C) achieve market acceptance.
D) reduce the barriers to entry in the industry.

Question

Quizplus · Accepted Answer

During the shakeout stage, firms begin to compete directly against one another for market share, rather than trying to capture a share of an increasing pie. As rivals vie for a shrinking pie and competitive intensity is increasing, the weaker firms are forced out of the industry.

The Strategic Objective of Businesses During the Shakeout Phase of the Industry