Final answer:
Smart phones are in the maturity phase, with Apple using differentiation and Samsung using both cost and differentiation strategies. Gas-powered automobiles are transitioning from maturity to decline, with Ford emphasizing cost leadership and BMW using differentiation.
Step-by-step explanation:
To identify at which phase in the industry life cycle each industry is currently in, let's analyze two sectors: smart phones and gas-powered automobiles.
Smart Phones
The smart phone industry is in the maturity phase of its life cycle. This phase is characterized by market saturation, brand loyalty, and slower growth in sales. Firms like Apple and Samsung demonstrate this. Apple pursues a differentiation strategy, focusing on unique features, user experience, and branding to justify higher prices. Samsung, on the other hand, employs both cost leadership and differentiation strategies. It offers a wide range of products that cater to both budget-conscious consumers and those seeking premium devices with distinctive features.
Gas-Powered Automobiles
The gas-powered automobile industry is facing the maturity to decline transition. The surge in electric vehicle demand indicates a shift that affects this industry's growth. Traditional manufacturers like Ford and General Motors possess significant market power but are diversifying to maintain competitiveness. Ford has traditionally emphasized cost leadership, optimizing production efficiency and volume sales. In contrast, BMW utilizes a differentiation strategy, focusing on brand prestige, performance, and technology to command higher prices.
Considering the market structure for each product, we note that both industries are highly competitive globally, with firms competing on the basis of price, product features, technology, and brand reputation.