Final answer:
Industries tend to follow a predictable life cycle with stages such as introduction, growth, maturity, and decline. Businesses that concentrate on their core competency and offer limited product ranges often have more success, particularly in the long term.
Step-by-step explanation:
True, industries often tend to follow a predictable industry life cycle. This life cycle typically includes stages such as introduction, growth, maturity, and decline. At the introduction stage, firms are likely to focus on their core competency and offer a limited range of products. This specialization can be crucial for success, as businesses that hone in on a few products can more effectively leverage their expertise and resources compared to those trying to cater to a broad market with a wide product range.
Over time, the industry evolves and companies may expand production, which is typically more feasible in the long term rather than the short term due to factors such as the cost and complexity of scaling up operations. Nonetheless, a business's strength often lies in its established core competencies, even as it adapts and grows throughout the different phases of the industry life cycle.