NISM Certifications · NISM-Series-XV: Research Analyst · Industry Analysis
During which stage of the industry life cycle do sales typically grow rapidly, profit margins widen and many new competitors begin to enter?
The growth stage fits this description. Sales expand rapidly, economies of scale lift margins, and the visible profitability attracts new competitors. Later, in maturity, growth slows and shares stabilise, and in decline sales fall.
- AGrowth stageCorrect
- BPioneering stage only with no sales
- CMaturity stage
- DDecline stage
Explanation
In the growth stage demand expands quickly, scale lowers costs and margins improve, attracting entrants. Maturity shows slower growth and stable shares, while decline shows falling sales.
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