Question

In emerging economies, the LCD television industry is in that phase of the industry life cycle in which the previously increasing market demand becomes limited. The competitive intensity within the industry is high, and inefficient firms have begun to exit the industry. This has allowed only a few major companies to come out as cost leaders and hold the shrinking market. Which of the following stages of the industry life cycle is the LCD television industry currently in?
A. Growth stage
B. Introduction stage
C. Shakeout stage
D. Decline stage

Answer 1

Answer: (C) Shakeout stage

 

Explanation:

 The shakeout stage is one of the term which is used to refers to the business that helps in describe about the various types of industries which is specifically eliminating due to the competition factor in the market.

The shakeout stage is basically occur when an organization is experience a quick growth and then generating the various types of negative flowing in terms of cash.

According to the given question, the shakeout stage is one of the type of industry life cycle stage in the television industry that helps in holding the shrinking market place.    

 Therefore, Option (C) is correct answer.