Question

Explain maturity and stabilisation stage in industry life cycle

Answer 1

Answer:

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Explanation:

At the maturity stage, majority of the companies in the industry are well-established and the industry reaches it saturation point. These companies collectively attempt to moderate the intensity of industry competition to protect themselves and maintain profitability by adopting strategies to deter entry of new competitors into the industry. They also develop strategies to become a dominant player and reduce rivalry.

At this stage, companies realise maximum revenue, profits and cash flows because customer demand is fairly high and consistent. Products become more common and popular among the general public, and the prices are fairly reasonable compared to new products.