Provide a scholarly overview of the “Industry Life Cycle Model/Framework” by finding, reading and synthesizing information from texts and peer reviewed journals. You are to comment on at least two (2)...

Industry Life Cycle
Industry life cycle describes the stages a new industry goes through in the market place.
Introduction Stage
At this stage Sales of the product and service is slow and the growth is also very steady.
Also Profits are negative or low as it requires heavy investments. It is needed a lot of money is
needed to attract distributors and build their inventories. To convert the slow sales into high
awareness and growth it is important to focus on Primary marketing objectives to build primary
demand through industry trial and awareness.
Growth Stage
This is the point in the whole life cycle when there is a boom in the product, Sales growth
is very fast, profits grow at a very fast pace and are maximum at the end of this stage. Price
remains constant or grows-since demand is high, Here Primary marketing objective is to increase
distribution and develop selective demand and maximize market share.
Maturity Stage
It will be observed that Sales growth has slowed down, previous high
profits just before this stage start to drop and overcapacity of industry now leads to greater
competition and “late majority” is the customer’s strength. Here Primary marketing objectives
are to Build selective demand, maximize profit while defending market share. Many industries
are found in this stage.
Decline Stage
Here Sales start declining along with Profits declines and customers are those who are
laggards. And there are a declining number of competitors. Here Primary marketing objectives
are to reduce expenditure and milk the brand. (Grant, 2010)
Changes in Industry’s structure with evolution of industry
Typically the entire industry’s structure that is the demand of the industry/service, the
technology used, the industries, the manufacturing capability, the trade procedure, the
competition’s nature will all evolve as time passes and industry moves from one phase to
another. Taking it up in detail one by one we will see the impact of time on evolution of various
aspects of an industry.
Demand
Typically in the introduction phase only the early adopters will go for the industry. The
idea will be new and most people will be apprehensive to go ahead and give it a try. As time
passes and industry hits the growth phase the number of people interested and aware about the
industry/idea/concept/service will be much bigger. There will be a huge increase in the number
of customers for the industry. As the industry hits the maturity stage most customers will be in
repeat buying behavior. Customer referrals will be high .However a large number of customers
will become price conscious .With passage of time the industry eventually declines and becomes
obsolete.
Technology
In the beginning of the industry life cycle the technology and innovation will be
competing and there will be rapid innovation. Often technological advantage leads to the
introduction of a new industry .With the industry hitting growth phase the technology will be a
standardized process and would be put in a place to avoid any kind of misuse of the technology.
However by the time industry hits maturity phase there will be only incremental innovation. The
know-how and technical advantage is lost and it is diffused into common knowledge.
Industries
In the beginning of the lifecycle the ideas will flow big time and there will be a wide
range of features and designs available in the industries. However with passage of time the focus
will shift to improvement of designs and quality of the industries rather than just numbers. Also
typically some designs emerge as favorites which are then manufactured in higher numbers
while some designs are dropped. With further advancement in life cycle commoditization of
industries and brand differentiation sets in. However after a point of time it becomes difficult to
differentiate one brand and industry from another with all displaying same features and
technologies.
Manufacturing
Manufacturing will also witness a huge change as the industry cycle evolves. Initially it
will be skill intensive and will work with short run focus. As the industry hits growth phase there
will be a shortage in supply due to work is being done manually which will lead to mass industry
and systems being brought into place. At growth stage whatever manufacturing churns out will
be bought in the market, however with passage of time industry will hit over industry mode with
lots of good having no buyers in the market.
Trade
Trade has gradually...