Janet Ludlow is preparing a report on U.S.-based manufacturers in the electric toothbrush industry and has gathered the information shown in Tables 17B and 17C. Ludlow's report concludes that the electric toothbrush industry is in the maturity (i.e., late) phase of its industry life cycle.

a. Select and justify three factors from Table 17B that support Ludlow's conclusion.

b. Select and justify three factors from Table 17C that refute Ludlow's conclusion.

Table 7B

Table 7C
• Industry Sales Growth -Industry sales have grown at 15-20% per year in recent years and are expected to grow at 10-15% per year over the next 3 years.
• Non-U.S. Markets -Some U.S. manufacturers are attempting to enter fast-growing non-U.S. markets, which remain largely unexploited.
• Mail Order Sales -Some manufacturers have created a new niche in the industry by selling electric toothbrushes directly to customers through mail order. Sales for this industry segment are growing at 40% per year.
• U.S. Market Penetration -The current penetration rate in the United States is 60% of households and will be difficult to increase.
• Price Competition -Manufacturers compete fiercely on the basis of price, and price wars within the industry are common.
• Niche Markets -Some manufacturers are able to develop new, unexploited niche markets in the United States based on company reputation, quality, and service.
• Industry Consolidation -Several manufacturers have recently merged, and it is expected that consolidation in the industry will increase.
• New Entrants -New manufacturers continue to enter the market.

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2010 2011 2012 Electric toothbrush industry index Electric toothbrush industry index 2 12.4 Dividend payout ratio Electric toothbrush industry index Electric toothbrush industry index