Asked by Madeline Lombardo on Jun 06, 2024
Verified
A firm in the early stages of the industry life cycle will likely have
A) high market penetration.
B) high risk.
C) rapid growth.
D) high market penetration and rapid growth.
E) high risk and rapid growth.
Industry Life Cycle
Stages through which firms typically pass as they mature.
Market Penetration
A measure of the extent of sales or adoption of a product or service compared to the total theoretical market for that product or service.
Rapid Growth
A phase in which a company or economy experiences significantly faster-than-average increases in revenue or expansion.
- Analyze the characteristics and challenges faced by firms at different stages of the industry life cycle.
Verified Answer
SP
Sidoney Pratt IG: ImperfectlySidJun 12, 2024
Final Answer :
E
Explanation :
In the early stages of the industry life cycle, firms often face high risk due to uncertainties and the need for substantial investment without guaranteed returns. Additionally, this phase is characterized by rapid growth as new products or services gain acceptance and start to penetrate the market.
Learning Objectives
- Analyze the characteristics and challenges faced by firms at different stages of the industry life cycle.
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