Examining the Phases of the Industry Life Cycle and Their Influence

The Industry Life Cycle and Its Impact on Market Dynamics

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At Literature Review of industry life cycle

The concept of industry life cycle is one that relates to the various stages that an industry moves through right from initial product entry, up to its eventual decline. Typically, there are five stages or phases in the industry lifecycle. Gort and Klepper (1982) originally identified these five stages. These five stages include early stage, innovation phase, shakeout or cost phase, maturity phase and finally decline phase. The work of Klepper (1997) explored the concept of industry life cycles.His work reviewed a series of evidence on the entry, exit, corporate survival, and product innovation and organization structure in new and emerging industries in order to assess if these industries go through the regular business cycles as they progress towards…