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NISM Certifications · NISM-Series-XV: Research Analyst · Industry Analysis

In the industry life cycle model used in industry analysis, which stage is typically characterised by slowing sales growth, intense competition and consolidation of weaker players, with growth roughly in line with the overall economy?

The maturity stage is the one marked by slowing growth near the economy's rate, heavy competition and consolidation. Early stages show very fast growth and new entrants, whereas maturity sees market saturation, price competition and weaker firms exiting or being acquired.

  1. APioneering (start-up) stage
  2. BRapid expansion stage
  3. CMaturity stageCorrect
  4. DIntroduction of the first product prototype

Explanation

In the maturity stage, industry growth slows to about the pace of the economy, competition intensifies on price and weaker firms exit or merge. The pioneering and rapid expansion stages show high and accelerating growth, not slowdown.

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