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A luxury sofa company has been around for 200 years. They saw a 5% drop in sales in two of the last three years, but saw sales stay constant over the last year. They believe this drop in sales was due to changing consumer preferences. To meet these new preferences, they choose to create a second product line of cost-friendly sofas that will rely on keeping costs low and then passing those cost savings off to consumers. To meet this, the hire 50 new people, which would be 20% of their previous workforce size. What company lifecycle stage is the company currently in? A luxury sofa company has been around for 200 years. They saw a 5% drop in sales in two of the last three years, but saw sales stay constant over the last year. They believe this drop in sales was due to changing consumer preferences. To meet these new preferences, they choose to create a second product line of cost-friendly sofas that will rely on keeping costs low and then passing those cost savings off to consumers. To meet this, the hire 50 new people, which would be 20% of their previous workforce size. What company lifecycle.
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