Final answer:
The concept of industry lifecycle refers to the different stages that an industry goes through from its inception to its decline. It consists of five stages: introduction, growth, maturity, decline, and renewal/innovation. Each stage is characterized by specific factors and challenges.
Step-by-step explanation:
The concept of industry lifecycle refers to the different stages that an industry goes through from its inception to its decline. It is a way to understand and analyze the changes and challenges that industries face over time. The industry lifecycle typically consists of five stages: introduction, growth, maturity, decline, and renewal/innovation.
In the introduction stage, a new industry is born, and innovative products or services are introduced to the market. This stage is characterized by high uncertainty, low competition, and potential high growth. Examples of industries in the introduction stage include electric vehicles and renewable energy.
The growth stage is characterized by increasing demand, growing market size, and competition. The industry attracts more players, and economies of scale start to play a significant role. Examples of industries in the growth stage include smartphones and e-commerce.
In the maturity stage, the industry reaches its peak and experiences stable growth. Competition intensifies, and market saturation may occur. Innovation becomes crucial to maintain or regain market share. Examples of industries in the maturity stage include automobiles and fast food.
During the decline stage, the industry experiences a decline in demand, profitability, and relevance. Technological advancements or changing consumer preferences often contribute to the decline. Examples of industries in the decline stage include traditional print media and landline telephones.
The renewal/innovation stage represents the industry's efforts to reinvent itself or adapt to changing circumstances. This stage involves implementing new technologies, business models, or strategies to stay competitive. Examples of industries in the renewal/innovation stage include streaming services and renewable energy.