Question

While the domestic airline industry is in the maturity stage of the industry life cycle, the internet-enabled appliance industry is in its growth stage. Which of the following can be inferred from the given data?
A) The number of competitors will be greater in the domestic airline industry than the internet-enabled appliance industry.
B) The internet-enabled appliance industry is ahead of the domestic airline industry in the industry life cycle.
C) While the domestic airline industry is mostly free from excess capacity, the internet-enabled appliance industry will have new entrants.
D) The mode of competition will be price-based in the internet-enabled appliance industry and will be non-price-based in the domestic airline industry.

Answer 1

Answer:

C) While the domestic airline industry is mostly free from excess capacity, the internet-enabled appliance industry will have new entrants.

Explanation:

While the domestic airline industry is in the maturity stage of the industry life cycle, the internet-enabled appliance industry is in its growth stage. Therefore the statement that can be inferred from the given data is that: while the domestic airline industry is mostly free from excess capacity, the internet-enabled appliance industry will have new entrants.

The major feature of the growth stage in the industry life cycle is market rivalry due to the fact that there is now acceptance of the product, more new entrants join the industry and more intense competition results