While the industry for e-book readers is in its growth stage,the industry for landline telephones is in the decline stage of the industry life cycle.Which of the following can be inferred from this?
A) While firms in the e-book reader industry will focus on pursuing a harvest strategy, firms in the landline telephone industry will focus on product innovations.
B) The e-book reader industry is at a more advanced stage than the landline industry of the industry life cycle.
C) While firms in the e-book reader industry will attract customers categorized under late majority, firms in the landline telephone industry will attract the early majority customers.
D) The number of competitors in the e-book reader industry will be larger when compared to the landline telephone industry.

Question

Quizplus · Accepted Answer

The number of competitors in the e-book reader industry will be larger when compared to the landline telephone industry. Changes in the external environment often take industries from the maturity stage to the decline stage. In this final stage of the industry life cycle, the size of the market contracts as demand falls. Only a few large firms are left in the industry. In the growth stage, however, there are many competitors.

While the Industry for E-Book Readers Is in Its Growth