1. Industry Life Cycle Analysis: Stages & Limitations Industries typically go through 5 main stages:  Embryonic Stage  Growth Stage  Shakeout Stage  Mature Stage  Decline Stage Each stage has its own characteristics and challenges. Let’s briefly explore each one.

2. Industry Life Cycle Analysis 1. Embryonic Stage This is where the industry is just starting. Growth is slow, prices are high, competition is limited, and risk of failure is high. 2. Growth Stage At this stage, demand grows rapidly. Prices fall due to economies of scale, and competition remains limited as the market expands. 3. Shakeout Stage Here, growth in demand slows down, excess capacity develops, and competition intensifies as firms battle for market share. 4. Mature Stage During this stage, demand growth stagnates, and the industry often consolidates into oligopolies. Firms focus on maintaining market share and profitability. 5. Decline Stage In this stage, demand growth turns negative due to factors like technological substitution or globalization. Competition remains intense as firms struggle to survive in a shrinking market.

3. Industry Life Cycle Analysis