During the growth stage of an industry life cycle, the focus is on product innovation until an industry standard or dominant design is established. Once this standard has been set, a firm should do which of the following during the growth stage in order to maintain its competitive advantage(s)?
a- Cater to late majority customers.
b- Consolidate with rivals.
c- Continue focus on product innovation.
d- Reinforce position as a differentiator.
e- Shift to process innovation focus.
There are four phases in an industry life cycle which are described as introduction, growth, maturity, and decline. In the growth phase of industry life cycle, the entire focus of the company is on product innovation until a dominant design is obtained. Once it is done, the organization focuses on process innovation. It helps the organization to maintain a competitive advantage. Therefore, the correct option is (e). All other options are wrong as none of them is an after attribute of the growth stage of the industry life cycle.
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