During the introduction stage of the industry life cycle:
A)Demand for a product is fairly steady
B)Research and development activities are less important than activities to gain market share
C)Firms have an opportunity to create barriers to entry
D)Producers are generally highly profitable
E)First-mover advantages are unimportant

Question

Quizplus · Accepted Answer

During the introduction stage, there are often opportunities for firms to create barriers to entry for potential competitors, such as by securing patents or developing strong brand recognition. This can help establish a dominant market position and increase profitability. A and E are incorrect because demand may be low and first-mover advantages can be important during this stage. Additionally, B is incorrect because research and development activities are still important in order to improve the product and meet customer needs.

During the Introduction Stage of the Industry Life Cycle