Why do firms have more strategic variety in the growth stage of the industry life cycle?
What will be an ideal response?
Competitive rivalry is muted in the growth stage because the market is growing fast. Since market demand is robust in this stage and more competitors have entered the market, there tends to be more strategic variety: Some competitors will continue to follow a differentiation strategy, emphasizing unique features, product functionality, and reliability. Other firms employ a cost-leadership strategy in order to offer an acceptable level of value but lower prices to consumers. They realize that lower cost is likely a key success factor in the future, because this will allow the firm to lower prices and attract more consumers into the market.
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