industry life cycle

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Industry Life Cycle

The period of time from the introduction of an industry to its decline and stagnation. Different analyses posit different stages of an industry life cycle (usually four to five), but all emphasize that an industry has a beginning, with technological innovation; a period of rapid growth; maturity and consolidation; and finally decline and possibly death. For example, in the video cassette recording (VCR) industry, the mid-1970s were a period of decentralized technological innovation, with VHS and Betamax formats vying for dominance. Later, video cassettes very quickly became a common household item. In the maturity phase, different companies selling VCRs attempted to corner a greater market share for their own (identical) versions of the product. Finally, the industry declined and was eventually supplanted by DVD players. An industry life cycle can be prolonged by several factors, including opening new markets to the product, finding new uses for the same product, or even attaining government subsidies. The concept of an industry life cycles applies most readily to the sale of goods and it is difficult to gauge how it works in a service economy.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

industry life cycle

The stages of evolution through which an industry progresses as it moves from conception to stabilization and stagnation. The stage in which a particular industry (and thus, a firm within the industry) currently exists plays a major role in the way investors view its future.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The two main streams in SSI models are sector lifecycle models (which may be product lifecycle or industry lifecycle) and history-driven models.
UK-based automotive supplier Delphi Automotive plc (NYSE: DLPH) has acquired UK-based automotive industry lifecycle and data management software firm Movimento, the company said.
06 January 2017 - UK-based automotive supplier Delphi Automotive plc (NYSE: DLPH) has acquired UK-based automotive industry lifecycle and data management software firm Movimento, the company said.
These outcomes are supporting the economy by accelerating industrial growth, feeding into the industry lifecycle that encompasses the need for more skilled NDT workers and new technologies as well as advancements in current technologies and structural integrity, according to Dunhill.
First announced in the Autumn Statement, the allowance is a single, basin-wide capital expenditure linked investment allowance, which was intended to reward investment at all stages in the industry lifecycle. The allowance is intended to simplify the existing regime of field allowances and provide certainty for companies so they can maximise the remaining opportunities in the North Sea.

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