INDUSTRY LIFECYCLE

A concept that refers to the normal stages an industry goes through during the course of its lifecycle in the market. Normally, there are five stages in this lifecycle

  1. Early Stage - Altering and positioning product design, forming the range and boundaries of the industry itself
  2. Innovation - Product innovation decreases, start of innovation process, and arrival of dominant design
  3. Cost or Shakeout - Firms establishing concrete design, achieving economies of scale, forcing smaller players to be purchased or exit altogether
  4. Maturity - Revenue becomes the main focal point
  5. Decline - Revenue drops, the industry in general may be changed by another one