Question

General Weed killers dominate the chemical weed control market with its patented product Weed-ex. The patent is about to expire, however. What are your forecasts for changes in the industry? Specifically, what will happen to industry prices, sales, the profit prospects of General Weedkillers, and the profit prospects of its competitors?

What stage of the industry life cycle do you think is relevant for the analysis of this market?

Short answer

The industry will see increased competition while the profits and industry prices will decrease.

b. Consolidation stage is relevant for market analysis at this stage.

Step-by-step solution

Explanation of forecasts of changes in the Chemical weed control industry

The expiration of the patent would mean that the company would face competition from other players. This would lead to falling in prices and profits. This decreased price would lead to an increase in sales too.

Explanation on stage analysis of this market

The above implies that the industry would see consolidation where the competition amongst producers is largely based on the price.