An embryonic industry is one that is just beginning to develop and is
characterized by slow growth, high prices, and volumes not yet sufficient to
achieve meaningful economies of scale, developing distribution channels, and
low brand loyalty as there is low customer awareness of the industry’s product.
Equity Investments MCQ - Equity Investments Section 2
A growth industry is characterized by rapidly increasing demand, falling prices,
improving profitability, and relatively low competition among companies
operating in the industry. Prices fall in the growth stage because economies of
scale are achieved and the distribution channels develop. Industry
consolidation is a feature of the maturity phase while intense competition
characterizes the shakeout stage.
Of the three industries listed the revenue/profits of the auto industry are most
likely to rise/fall with overall economy.
