l3 Flashcards
what is an industry?
group of orgs supplying market offering similar products to meet customer needs
state the 5 stages of the industry life cycle.
- intro
- growth
- shakeout
- maturity
- decline
explain the first stage of the industry life cycle.
intro. industry is new with few competitors & high uncertainty
explain the second stage of the industry life cycle.
growth. rapid expansion as more companies enter industry, driven by high demand
explain the third stage of the industry life cycle.
shakeout. key stage where weaker firms exit as comp fierce. fail to keep up with innovation, cost control, market demand. leads to consolidation where only strongest firms survive.
explain the fourth stage of the industry life cycle.
maturity. industry stabilises with fewer players and growth slows
explain the last stage of the industry life cycle.
decline. industry contracts as demand fades or new tech replaces it
state the 4 stages of the product life cycle.
- intro
- growth
- maturity
- decline
explain the first stage of the product life cycle.
intro. new product launched, sales slow as it gains market awareness
explain the second stage of the product life cycle.
growth. growth gains popularity, sales increase rapidly
explain the third stage of the product life cycle.
maturity. sales peak & stabilise, but product may face comp from alts.
explain the last stage of the product life cycle.
decline. sales fall as the product becomes outdated or replaced by new version or innovation
state porters 5 forces.
- threat of new entrants
- threat of substitute products
- power of suppliers
- power of customers (individual, industrial, govt)
- competitive rivalry
are these threats high or low for the industry?
