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Management · Q203

Strategic Management

Graduate and Post Graduate · Management · question 203

Q203

Explosive growth cannot be maintained indefinitely. Sooner or later, the rate of growth slow and the industry enters the

A.
Embroynic stage
B.
Growth stage
C.
Shakeout stage
Answer
D.
Maturity stage

Answer: Option C

Solution

Answer: Option C
Solution:
Explosive growth cannot be maintained indefinitely. Sooner or later, the rate of growth slow and the industry enters the Shakeout stage. Shakeout usually refers to the consolidation of an industry. Some businesses are naturally eliminated because they are unable to grow along with the industry or are still generating negative cash flows.