BUS 800 Chapter 5: BUS 800 – Chapter 5 p. 166-177 – The Industry Life Cycle
Document Summary
Bus 800 chapter 5 p. 166-177 the industry life cycle. The industry life cycle is the supply-side equivalent of the product life cycle, but longer than a product life cycle (industry born, sales grow, reach maturity, go into decline, and ultimately die) Four phases: introduction (small sales, low market penetration), features a wide variety of product types that reflect the diversity of technologies and designs and the lack of consensus over customer requirements. Maturity (increasing market saturation): ksf: cost efficiency through scale economies, low wages, low overheads. Shakeout phase the rate of firm failure increases sharply. Two forces that drive industry evolution: demand growth and the production and diffusion of knowledge changes in demand growth and technology over the cycle have implications for industry structure, competition and the sources of competitive advantage. Dominant design overall configuration of a product, service or system.
