The Industry Life Cycle

Very similar to the PLC except that in industries products change – cathode Ray TV, to plasma, to 3d…..

Can help predict number and type of organisations at each stage. And therefore allows for an estimate of competitiveness.

So what..

I can see the benefits of being an early entrant to the industry – staying ahead and setting the pace, perhaps being able to control developments and of course the early profits. When new entrants emerge you can already be looking to implement diversified products. Could look to merge with other companies for opportunities before others do. And be ahead of the game when it comes to substitutes and price wars (good for the customer – bad for profit)