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.
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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 ?
From the year 2011 to 2015, the level of railway development has increasing trend and started a new second round of railway industry life cycle.
Pakistan railways experienced introduction, growth, maturity, and decline stage and a new round of industry life cycle over the years.
From the year 2011, the upward trend of combined utility curve shows a new round of industry life cycle of railway industry by increase in number of passengers and freights carried.
* Designing a decision support system for identifying the location of an industry on the ADL industry life cycle using the concepts of fuzzy neural network (ANFIS)
Klepper, Steven (1997), "Industry Life Cycles," Industrial and Corporate Change, 6(1): 145-183.
Clearly, the quality improvement of tires (and roads) starts in the beginning of this century when the industry life cycle was in its earliest phase.
This suggests fierce competition throughout the industry life cycle. The market shares of unit tires sales of the four leading companies (Goodyear, Firestone, U.S.

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