Question

Select an industry and consider how the industry life cycle has affected business strategy for the firms in that industry over time. Detail your answer based on each stage: introduction, growth, shakeout, maturity, and decline. Course Title: Strategic Management Decision‐Making Text Book ISBN: 978‐1259420474 ‐ Title: Strategic Management 3e, Author: Frank T. Rothaermel.

Answer 1

Firstly we will discuss about what is industry liife cycle-:When Many changes happen to business through different phases with time.Business Strategy should be properly execute as it enables comapny to gain competitive advantage to reach its goals.

There are five phase that compnay must deal with it in manufacturing industry.

At first we will discuss about the first intro stage,where company gets develop distribution channels and consumers are not aware with the product and services they are offering at this stage company should do its advertisements as much to gain publicity.The growth is considered to be as second stage where the company product and service gets a little customers and starts to make profit.The Third stage is considered to be as Shakeout stage in which profits,revenues for the company starts declining and get low in that stage company should study the market about needs of consumers and what to offer them.At the fouth stage which is Maturity stage, the revenue and profits of company gets constant since the company at saturation point.The last stage to discuss is Decline stage where Industry get low due competition and adapt to new products and innovation to keep making revenues to company.

For all this Vodafone the telecom company is the most suitable expamle to the current market as company demand started declining and starts lowering profits and uses many new innovations by improving their existing products and made new schemes by lowering call rates,made high speed data and low data rates to beat the competition in the market and retain its position.