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Question:

In the industry life cycle model, the threat of new entry into an industry is greatest during the:

A growth stage.
Explaination

New competitors are most likely to enter an industry during the growth stage of the industry life cycle. New entrants are less of a threat in the embryonic stage, when growth is slow and customer acceptance of the new product or service is highly uncertain. In the mature stage, the industry tends toward an oligopoly as competitors consolidate.