ADMS 1000 Chapter Notes - Chapter 7: Technology Life Cycle, Herbert Boyer, Aggregate Demand

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Indira Somwaru

Document Summary

Industry life-cycle model an inverted u-shaped growth pattern that is seen in all industries given a long enough period of observation. The number of organizations rises initially up to a peak, then declines as the industry ages. Technological innovation will often trigger the start of a new life cycle or the creation of an entirely new industry. Describes the evolution of the entire product category and its associated industry, not a single product or firm. The industry life-cycle model divides industry evolution into 4 distinct phases: introduction, growth, maturity and decline. Introductory phase sees many entrepreneurial firms enter the industry, hoping to emerge as a market leader. Mature phase is when the market stabilizes and sales grow more slowly. Forms then become more efficient producers to lower costs and compensate for slower revenue growth. Decline phase- sales drop and rivalry further heats up as the industry undergoes greater consolidation through more mergers and the exit of inefficient firms.