Question

The leading producer of cell phone backup batteries, Jumpstart, has achieved great success because they produce high-quality battery backups that are not too expensive. Even so, another company that produces lower-quality batteries at the same price has also achieved some success, but not as much as Jumpstart. Also, in general, the price of backup batteries has declined because of economies of scale and learning. In addition, Jumpstart has added complementary assets, such as a carrying case. Considering all of these factors, the backup battery industry is most likely in the:

Answer 1

Answer:

shakeout stage    

Explanation:

Shakeout generally refers to market restructuring. Many companies are simply excluded as they can not expand alongside the market or continue to generate adverse cash flows.

Many firms have integrated with rivals or are purchased at the growth stage by those who have been able to get bigger market shares.  As of the shake-out level, revenue growth, cash flows, and income begin to decline as business reaches maturity.