Industry Life Cycle

Question 1

What is the 1st stage of the industry life cycle?

Answer 1

Introduction

Question 2

What is the 2nd stage of the industry life cycle?

Answer 2

Growth

Question 3

What is the 3rd stage of the industry life cycle?

Answer 3

Shakeout

Question 4

What is the 4th stage of the industry life cycle?

Answer 4

Maturity

Question 5

What is the 5th stage of the industry life cycle?

Answer 5

Decline

Question 6

What are the strategic implications of being in the introduction period?

Answer 6

Price high to cash in on novelty
Price low to gain high initial market share
Monitor success of rival technologies
Stay in the market, will see growth in the future

Question 7

What are the strategic implications of being in the growth period?

Answer 7

Ensure capacity expands to match demand
Maintain barriers to entry
Refine product

Question 8

What are the strategic implications of being in the shakeout period?

Answer 8

Monitor industry for any potential mergers

Shift business model from customer acquisition to customer retention

Question 9

What are the strategic implications of being in the maturity period?

Answer 9

Maximise current financial returns from the product
Defend market position
Leverage existing customer base to gain additional income
Ensure successor industry is ready to launch

Question 10

What are the strategic implications of being in the Decline period?

Answer 10

Evaluate exit barriers
Identify optimum time to leave industry
Seek potential exit strategy