Question

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true?
a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry.
b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation.
c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits.
d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.

Answer 1

Answer:

b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation.

Explanation:

Industry cycle is the different stage that business operate, progress, prospect and slump within an industry. It consists of five stages which are — startup, growth, shakeout, maturity, and decline. These stages can last for different amounts of time, some can be months or years.

Since cell phones with holographic keyboards are at the early introductory start up stage of the business cycle, they will focus more on innovating to progress and produce product that will add value to the customer and accelerate growth.

The tablet industry on the other hand at the growth stage will focus more on process innovation; which means tablet computers manufacturers will implement new and significantly improved on production and delivery (including significant changes in techniques, equipment and/or software) since tablet computers are already enjoying profit in revenue and positive cashflow.