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.

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.
References in periodicals archive ?
xlsx" allocated to questions of life-cycle (including the old age and youth) and one page is devoted to the questions of the industry life cycle.
This study used a seven-stage model of the industry life cycle (Robinson, 1998; Robinson & McDougall, 1998).
The Industry Performance chapter covers the following: Executive Summary, Key External Drivers, Current Performance, Industry Outlook and Industry Life Cycle.
The report also covers regional wise market, market dynamics, current trends & opportunities, porter's analysis, SWOT analysis, industry life cycle of 3D printer technologies and timeline in India 3D printer market.

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