During the decline stage of the industry life cycle:
A)Tight cost controls leading to efficiency are essential
B)Products are highly differentiated
C)Competition is no longer based on price
D)New entrants are common
E)Demand is increasing

Question

Quizplus · Accepted Answer

During the decline stage, sales and profits decrease as demand for the product declines. In order to maintain profitability, tight cost controls and efficiency measures are necessary to reduce expenses and maximize profits. This may involve reducing staff, cutting back on marketing campaigns, and streamlining operations as much as possible. Therefore, the best choice among the given options is A.

During the Decline Stage of the Industry Life Cycle