industry lifecycle

The normal stages that a industry goes through during the course of its lifecycle in the market. An industry lifecycle is broken into five separate phases: Early stages phase, innovation phase, cost/shakeout phase, maturity phase and decline phase. During the initial phase, the product may be altered to make a place for it in the industry. The innovation phase looks to expand the product even further to come up with a concrete design. The next phase involves companies within the industry establishing a concrete design thus eliminating some of the smaller companies that do not follow this patter. At the maturity stage, revenue from the product becomes the main focus of the company. Finally, the decline phase is marked by decreasing revenue as demand shifts to another product in the industry.