STRATEGIC

MANAGEMENT
LIFE CYCLE
ANALYSIS
BY -
MS . GOLDIE AGARWAL - 02
MS . SAUMYA PADHYE - 27
MS . CHETNA PATIL - 36
MS . DEVYANI RANPISE - 42
MS . GAYATRI
SURYAWANSHI - 43
MS . PRIYANKA SONAWANE -
52
 INDUSTRY LIFE
CYCLE
• Every Industry typically passes
through different stages of a life
cycle.
• These stages are:-
1.
2.EMBRYONIC STAGE
3.GROWTH STAGE
4.MATURITY STAGE
5.DECLINE STAGE
 4 Stages of Industry Life Cycle
Market Size

Maturit
y
 EMBROYNIC STAGE
• Also called the ‘take-off stage’.
• Organizations need to set up their
base.
• Important to build market share.
• Investment & capital needs are
highest.
• Returns are low & uncertain.
• Companies are first movers & fast
followers.
• Technology is yet unproven & not
• Demand is being established.
• Customers lack information.
• Business models are unproven.
• Business uncertainty is high.
• Managerial decisions involve high
risks.
• E.g.:- Organic Foods, Bioinformatics,
green products etc.
 GROWTH STAGE
• Also called ‘Sunrise Industries’.
• Investment & capital needs decrease
but gradually.
• Returns are high.
• Technology gains firm footing &
standardization increases.
• Demand is established.
• Customers gain information.

• Customers learn to differentiate
between product offerings.
• Business models take shape.
• Business is on more secure footing.
• Managerial decisions involve
moderate risks.
• Market share increases.
• Competitive advantage.
• E.g.:- Automobile, IT, Retailing etc.
•
 MATURITY STAGE
• Investment & capital decrease
significantly.
• Returns are lower & stabilized.
• Technology developments are few &
standardization is high.
• Demand is stable.
• Customers well aware of the options
available.
• Customers learn to choose &
differentiate.
• Market shares of companies are
steady & jealously guarded.
• Industry gets consolidated & is
dominated by a small number of
large companies.
• Business Strategies:
1. Cost leadership
2. Differentiation
3. Focus
• Maturity period can range from very
long to an early demise,
depending on the industry.
 DECLINE STAGE
• Also called ‘Sick industries’.
• Refers to industries that have
declined in performance or are
declining.
• Investment & capital practically
cease .
• Returns decline considerably.
• Technology developments become
superfluous.
• Demand shrinks.
• Difficult to attract new customers.
• Products lose their brand power.
• Market shares reduces in size as
industry demand shrinks.
• Industry faces movement of firms
through Retrenchment strategies.
• Business strategy is of low-cost.
• Price based competition intensifies.
• E.g.:- Mining, Paper & Pulp, Tobacco
etc.
•
 INFERENCES
• Every industry goes through all 4
stages of life cycle at some point or
the other.
• What differs is the cycle period that it
enjoys at every stage.
• No company can stay at maturity stage
and enjoy it for too long.
• Hungry competitors are waiting to grab
the top notch.
• If a company is in declining stage, it
needs to go for innovation to bounce
back in the market or else it will have
to exit.
 THANK
YOU !!
 ?????????