Question

U.S. Steel and Nucor (the two remaining major players in the U.S. steel industry) have been forming alliances as a means to enter markets in Europe and Asia. The steel industry is an example of a(n) __________ market in which firms typically use alliances to gain market access. Group of answer choices fast-cycle standard-cycle slow-cycle intermediate-cycle

Answer 1

The answer is Slow-cycle market.

Explanation: A slow-cycle market is one in which the resources used by a company are protected and by so doing, a company can maintain monopoly over the market.

In this kind of market, competitors find it very difficult to penetrate the market. This difficulty may be as a result of the major company creating a barrier (in form of making their products or services very hard to imitate) to other companies from entering the market, or it may be because entering the market is very expensive.

Companies in slow-cycle markets will often use strategic alliances to enter into restricted markets or to establish franchises in new markets.