Evaluating the Industry Life Cycle

The number of stages in this industry life cycle analysis will vary based on how much detail you wish. A five phase model would include which can be Pioneering development Rapid accelerating growth Fully developed growth Stabilization and also market maturity Deceleration involving growth and decrease. Besides being valuable when estimating revenue, this analysis of your industry’s life cycle also can provide some insights into income and earnings expansion, although these profit measures will not necessarily parallel the actual sales growth. The profit perimeter series typically peaks very early from the total cycle after which it levels off and also declines as competitors is attracted by the early success on the industry.