BUS 800 Chapter Notes - Chapter 5: Institute Of Environmental Sciences And Technology, Satisficing, Organizational Ecology

• School: Ryerson University
• Department: Business
• Course: BUS 800
• Professor: Steven Tissenbaum

Document Summary

Product life cycle: notion that products go through distinct stages from their introduction to eventual withdrawal from the market: products are born, their sales grow, they reach maturity, they go into decline and they die. Industries that product the cycles have a life cycle too. Life cycle has 4 stages: intro/emergence, growth, maturity and decline. 2 factors that drive industry evolution: demand growth and the production and diffusion of knowledge. Lc a(cid:374)d stages i(cid:374) it a(cid:396)e defi(cid:374)ed (cid:271)(cid:455) (cid:272)ha(cid:374)ges i(cid:374) a(cid:374) i(cid:374)dust(cid:396)(cid:455)"s g(cid:396)o(cid:449)th (cid:396)ate o(cid:448)e(cid:396) ti(cid:373)e. Growth: accelerating market penetration due to tech improvements and increased efficiency open up the mass market. Maturity: caused by increasing market saturation, when saturation is reached, demand is only for replacement. Decline: occurs as industry becomes challenged by new industries that produce tech superior substitute g/s. New knowledge in the form of g/s innovation creates new industries. Knowledge creation and knowledge diffusion influence industry evolution.