‘COVID-0: We are inthis together. Access free textbook solutions with step-by-step explanations. Find study resources a ‘etontosice avalon at amazancat a ‘Strategic Management: Theory & Cases: An Integrated Approach Ses 2! exercises ‘Chapter 2, End of Chapter, DISCUSSION QUESTIONS, Exercise 3 Path Parte Part Identify a growth industry, a mature industry, and a declining industry. For each industry, identity the following: (a) the number and size distribution of companies, What do these factors tell you about the nature of competition in each industry? What are the implications for the company in terms of opportunities and threats? Explanation Companies are atthe growth stage when sales start to pick up and grow a rapid upward trend, This happens because there is already an awareness of the new product or service and distribution channels, and economies of scale have already been established and achieved, respectively Companies are said to be at the mature stage when they start to experience market saturation, low demand, and slow growth. Lastly, ‘companies are said to be atthe declining stage when they experience less competition, and the sales and grow rate start to decline. Sample Response & ‘The table below summarizes the industries with their corresponding stages inthe industry ile cycle ane companies in each industry Industries Industry fe cycle stage | Number of companies Video Conferencing Software | Growth ait Oil Dring and Gas Extraction Mature 705722 Newspaper Publishing Dectning 6593 + There are only 121 businesses in the video conferencing software industry, which has an average growth rate of 25.0% (2016-2020), The market size is estimated to be $7 billion, Industries a this stage, such as the video conferencing software industry has s0 much potential fo grow and expand, There are very few compelitors compared to those industries al the mature and dectining stages. Growth in the number of companies at this stage is an opportunity for consumers if new industry players will come in but a threat to existing industry players. ‘There are 70,572 businesses inthe oil dling and gas extraction industry, which has an average growth rate of 0.8% (2015- 2020). The market size is estimated to be $297 bilion. [2] Growth rate starts to plateau for industries at this stage. The oll ring and gas extraction industry can sil be very attractive but requires a huge investment to start. An opportunity at this stage may be a consolidation of companies through mergers and acquisitions since competing industry players want to broaden their customer base, Threats at this stage may be in the form of price wars since companies would Bke to increase demand by reducing prices, Another threat isthe availabilty of resources, such as oll and il ields available for drilling ang extraction, considering that existing industry players may have maximized the use of avalable resources. There are 6.593 businesses in the newspaper publishing industry, which has an average growth rate of 44% (2015-2020), The market siz is estimated to be $23 bilion. [3] Growth rate starts to dectine for industries at this stage. The newspaper publishing business may no longer be attractive to new investors because people now depend on other multimedia Platforms for sources of news and current affairs, An opportunity for industry players at ths stage is to versity the business so that it ean enter the growth stage again, and athveat at this stage isthe shifting of customer preferences, which vill eventually ead to negative growth and complete cessation of business.Works Cited |L Newspaper Publishing Industry in the US - Market Research Report, February 2020, hitns:/mwubiswosc.com/united- states/market vesearch-reports/newsnaper-nuilshing:industry/ 2.OIIDriling & Gas Extraction Industry inthe US - Market Research Report, April 2020, hitps./Avwibisworld.com/united- 8. Newspaper Publishing Industry in the US - Market Research Report, February 2020, hitns.//uwubisworeicom/united= Hon wou this werd extn? os tip unto Page 70 Boos & DQ.Ex2 iz TRUSTe 0 ee conan oniconoe Sones fa i ts const cons one cata fa oan. aay os — cam Privacy Policy inven ‘Toums of Use YouTube