Final answer:
A consolidation strategy is a good option in a A) mature industry where companies can capitalize on cost efficiencies and market power.
Step-by-step explanation:
A consolidation strategy is a good option in a mature industry. In a mature industry, economies of scale are small compared to the size of demand in the market. A consolidation strategy allows companies to achieve cost savings through economies of scale, reduce competition, and strengthen their market position.
For example, in the airline industry, which is considered mature, several mergers and acquisitions have taken place in recent years. Airlines consolidate their operations to streamline costs, expand their route networks, and enhance their bargaining power with suppliers.
Therefore, a consolidation strategy is most beneficial in a mature industry where companies can capitalize on cost efficiencies and market power.