Consolidation Phase

Consolidation Phase

In an industry life cycle, the period of time after an industry has grown rapidly but before it begins to decline. Different analyses posit different numbers of stages for an industry life cycle (usually four or five), but all emphasize that an industry's consolidation phase reduces redundant products and processes, and is usually marked by companies in the industry acquiring one another. For example, in the video cassette recording (VCR) industry, after a period of rapid growth and technological innovation, a consolidation phase occurred. The VHS technology overran the Betamax technology, and different companies selling VCRs attempted to corner a greater market share for their own (identical) versions of the product. It is also called the maturity phase.