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85. Cash cows are typically found in the _________ stage of the industry life cycle.

A. startup
B. consolidation
C. maturity
D. relative decline

1 Answer

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Final answer:

Cash cows are typically found in the maturity stage of the industry life cycle. They have a well-established reputation for slashing prices, small economies of scale, and a well-respected brand name.

Step-by-step explanation:

Cash cows are typically found in the maturity stage of the industry life cycle. In this stage, the industry has reached a stable and predictable phase, where demand is at its peak and growth is slow. Cash cows are products or services that have a large market share and generate a consistent flow of revenue.

They are characterized by several factors: a well-established reputation for slashing prices in response to new entry, which indicates their dominance and ability to deter new competitors; economies of scale being very small compared to the size of demand in the market, meaning that cost advantages are minimal but demand is high; and a well-respected brand name that has been carefully built up over many years, which contributes to customer loyalty and trust.

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