Stage of Industry Life Cycle Samples †MyAssignmenthelp.com

Question: Discuss about the Stage of Industry Life Cycle. Answer: Stage of industry life cycle The term industry life cycle is used to identify the evolution of a business industry that is based on the characteristics of the industry in the market. As per Esteve-Prez, Pieri Rodriguez (2017) industry life cycle can be classified into four broad sections that justify the longevity of an industry. These include development, introduction, growth, maturity and decline. The development and introduction phrase is the startup phrase in which an industry develops a product or service with limited information available to the public. The second stage is associated with the understanding of the customers about the value of a product. A product reaches maturity during its slow growth with the focus shifting to new products. This ultimately leads to the decline of the demand for the product and it fades away from the market in a slow manner (Tavassoli, 2015). The case study analyses the industry life cycle of smart speakers and its importance in reputed companies like Apple, Google, Microsoft and Amazon. The analysis of the case study indicates the fact that the smart speakers are at a growing stage of development as the companies as well as the people are trying to come to terms with the product. Companies like Amazon and Google wants to remain with the roots of the business. Microsoft on the other hand felt reluctant to invest in the manufacturing of smart speakers. However, due to the competition and the change in time and technology, the use of smart speakers in phones, cars and at home has become significant. It has already been seen that the sale of the product is forecasted to be 62 million units by 2022. This is predicted to be a significant rise in the sale of the product since 2016. Hence, based on the evidence from the case study, it can be said that the companies need to deal with the challenges that may arise in the early sta ge of the industry life cycle. Recommendation In order to deal with the early stages of development of the product, companies like Apple, Amazon, Google and Microsoft need to understand the demand for the product in the market. The case study highlights an observation made by Watkins that shed light on the huge hype that products had witnessed at the early stages. However, it declined quickly as the products did not gain the potential recognition in the market. In the case of smart speakers, the demand for the product is unknown as most people would prefer useful technologies. Hence, the companies need to conduct a proper analysis of the market before launching the product. Furthermore, recent technologies also need to be added to the product in order to make it multi-functional and prolong the longevity of the smart speakers. The companies also need to use the reputation it has in order to promote the product in the market. Unlike other times, proper information about the product needs to be provided in order to increase the po pularity of the product. Bibliography Arikan, A. M., Stulz, R. M. (2016). Corporate acquisitions, diversification, and the firm's life cycle.The Journal of Finance,71(1), 139-194. Bakman, L., Hashai, N. (2017). Industry Life Cycle, Product Type, and Level of Exploration in Entrepreneurial Knowledge Intensive Firms. Inthe world scientific reference on entrepreneurship: Volume 3: Sustainability, Ethics, and Entrepreneurship(pp. 363-393). Esteve-Prez, S., Pieri, F., Rodriguez, D. (2017). Age and productivity as determinants of firm survival over the industry life cycle.Industry and Innovation, 1-32. Tavassoli, S. (2015). Innovation determinants over industry life cycle.Technological Forecasting and Social Change,91, 18-32.