Question

Which of the following statements is true of declining industries?a. Typically, not all segments of an industry decline at the same rate.b. The greater the exit barriers of a declining industry, the lower the intensity of competition.c. Divestment strategy is when a company in a declining industry tries to improve sales by improving product quality.

Answer 1

a. Typically, not all segments of an industry decline at the same rate

Step-by-step explanation:

answer is Not all segments of an industry typically decline at the same rate

because declining industry means that growth is negative, or that growth is not sustained by wider economic growth. There are many reasons for the shrinking industry: fast-paced consumer demand can evaporate, scarcity of natural resources or technological innovations may lead to emerging alternatives, but in a declining industry all segments do not decline at the same rate and same time.