Question

Benny's Baos had an edge in the market, but other companies began to enter the market. Benny is now losing customers even though he has launched an aggressive marketing campaign in an attempt to attract customers. Benny's Baos is likely in the ______ stage of the industry life cycle.

A. Introduction
B. Growth
C. Shakeout
D. Decline

Answer 1

Benny's Baos is in the Shakeout stage of the industry life cycle, facing increased competition and a saturated market despite having a well-respected brand name. So, the correct answer is option c.

Step-by-step explanation:

Benny's Baos is likely in the Shakeout stage of the industry life cycle. This stage occurs after the initial growth phase when the market becomes saturated with competitors, leading to increased rivalry. Despite Benny's efforts at aggressive marketing, the presence of competitors and loss of customers suggests that economies of scale are no longer substantial, and the market cannot sustain all the competing businesses.

Benny's well-respected brand name built up over the years may still offer a competitive advantage, but should focus more on differentiating their products and maintaining customer loyalty to withstand the shakeout. So, the correct answer is option c.