What are the five stages of industry life cycles? Choose five industries that you believe represent...

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Finance

What are the five stages of industry life cycles? Choose fiveindustries that you believe represent each part of the cycle, andexplain why each industry may fall under each respective stage. Howwill investor expectations related to capital needs, dividendpayments, and returns change under each stage?

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Industry Life CycleAn industry life cycle depicts the various stages wherebusinesses operate progress prospect and slump within anindustry An industry life cycle typically consists of five stages startup growth shakeout maturity and decline These stages canlast for different amounts of time some can be months oryearsStartup StageAt the startup stage customer demand is limited due tounfamiliarity with the new products features and performanceDistribution channels are still underdeveloped so there are veryfew product supply and promotional activities There are also lackof complementary products which add value to the customerslimiting the profitability of the new productCompanies at the startup stage are likely to generate zero orvery low revenue and experience negative cash flows and profits dueto large amount of capital initially invested in technologyequipment and other fixed costsLike for example in 1980s personal computers were a part ofvery few houses while on the other hand products like fans oreven refrigerators were part of almost every householdSo naturally the growth rate of products like refrigeratorswill be much lessGrowth StageAs See Answer

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