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

In the industry life cycle, which stage is typically characterised by slowing growth, intense price competition, consolidation and exit of weaker firms?

The maturity or stabilisation stage fits this description. Growth slows, price competition intensifies, and weaker firms exit or are consolidated. Earlier stages, such as pioneering and rapid growth, feature expansion and new entry rather than consolidation.

  1. APioneering stage
  2. BRapid growth stage
  3. CMaturity or stabilisation stageCorrect
  4. DStart-up stage

Explanation

In the maturity stage growth rates slow towards the economy's rate, competition intensifies and weaker firms exit or merge. The pioneering stage has high uncertainty, and rapid growth has fast expansion with new entrants.

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