Question

search for three public companies which operate in industries that are in different stages of the industry life cycle. For each company provide the rationale justification for allocating the respective stage.

Answer 1

I would be a locating three different life cycle two different companies that would be-

1. Swiggy and Zomato in the Growth stage of a companies life cycle-These companies are growing and acquiring more of the market share and there is a pricing power also. They have a very high growth potential as their market share is still very low and they have still to cater to the smallest cities of a country ( India).

2. Walmart in maturity cycle-Walmart is a company which is catering to the retail consumer durables and staples. This company does not have much scope to grow because it is already acquired with majority of its market share and does not have much potential to grow .it can only gain through new acquisitions and new strategies it has done by acquiring Flipkart in India.

3. JCPenney In declining cycle- This company is in a declining stage where there is a crisis of Survival and there is no room for recovery. It could realise by selling of its assets at the disposable value.The survival of this company is very tough in any situations because they are already done with their company life cycle.

These companies are through their respective life cycle and it is applicable in the life cycle of every company to pass through the four respective stages which are introduction, growth maturity and decline.