Asked by amber carrillo on Apr 25, 2024

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In the consolidation stage of the industry life cycle,

A) it is difficult to predict which firms will succeed and which firms will fail.
B) industry growth is very rapid.
C) the performance of firms will more closely track the performance of the overall industry.
D) it is difficult to predict which firms will succeed and which firms will fail, and industry growth is very rapid.
E) industry growth is very rapid, and the performance of firms will more closely track the performance of the overall industry.

Consolidation Stage

A phase in the market cycle or an individual security's behavior marked by limited price movement and the accumulation or distribution of shares, preceding a breakout or breakdown.

Industry Growth

The rate at which a specific industry or sector expands its production or capacities, often measured in terms of revenue or volume increase.

Industry Life Cycle

The progression of an industry through various stages including introduction, growth, maturity, and decline, which can influence companies' strategic planning.

  • Investigate the properties and hurdles faced by businesses during separate phases of the industry life cycle.
  • Understand investment strategies related to the industry life cycle stages.
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MB
Michelle BakerApr 27, 2024
Final Answer :
C
Explanation :
During the consolidation stage of the industry life cycle, the industry begins to mature, and the performance of firms within the industry tends to more closely align with the overall industry performance. This is because the market becomes more established, and the surviving firms typically have solidified their market positions.