Which of the following is not a stage in the industry life cycle?
Click on the arrows to vote for the correct answer
A. B. C. D. E. F.B
The industry life cycle is divided into five distinct stages. Specifically, the industrial life cycle progresses from the development stage to an accelerating growth stage to a mature growth stage to a market maturation and stabilization stage. Finally, the fifth stage of the industrial life cycle is characterized by decelerating growth and sales decline.
As an industry or company progresses through the industrial life cycle, sales begin to grow rapidly (accelerating growth) then slow considerably as the product or service begins to reach critical mass (mature growth). During the mature growth stage, the industry or company grows at a slower pace, until eventually growth begins to slow considerably (market maturity and stabilization) as the market for the industry or company's products becomes more completely defined. An industry or company typically reaches the fifth stage of the industrial life cycle, growth deceleration and decline, only after many years of stabilization. For example, the automobile industry made automobiles widely available in the early 20th century, and has experienced a period of stabilization for nearly 50 years.
The market for automobiles has arguably not progressed to the growth deceleration and decline stage, as automobile sales are still experiencing single digit annual growth.