What is the lifecycle stage of your industry?

Objectives Examine lifecycle stages in the context of entrepreneurial industry status Explore the impact of lifecycle stages on your success as an entrepreneur

Exploring industry status With industry conditions framing knowledge and demand factors, it’s important to understand industry status –Industry status addresses industry lifecycle and industry structure with an emphasis on growth opportunities and industry evolution By studying industry status, aspiring entrepreneurs can assess the industry’s timeliness for new entrepreneurial entrants

Macroeconomic Change Entrepreneurial Motivation Entrepreneurial Behavior Industry Condition Industry Status Industry lifecycle Industry structure Opportunity Identification Value Curve Competition The Opportunity Analysis Canvas TM Entrepreneurial Mindset

Defining industry lifecycle “the stages of development of an industry” Lifecycle of the industry significantly affects a new venture’s performance in the market Impacts how existing and new competitors will behave and react to your entry

Lifecycle influences cost of entry and rules of competition Depending on the maturity of the industry, the costs to enter and compete effectively differ dramatically –Early lifecycle industries are typically easier and more cost effective for entrepreneurs to compete within –Alternatively, middle and late-stage industries may be dominated by large, established competitors

New ventures perform best in young industries Substantially less competition versus established industries –Competing companies are often small and thereby operating on a more level playing field with new entrants Offer a common learning curve amongst all competitors –No old competitors –No one is yet an established leader

Summary Industry lifecycle influences the competitive environment of your venture, and overall success Young industries present multiple advantages for new entrants Requires greater consideration of what the future holds, and how to establish and grow the industry, as the rules are yet to be set