The model of industry lifecycle follows a bell curve highlighting the growth and decline of an industry over time. In the early stages we see slow growth as the product or service isn’t known and people are still learning about it. As time goes on the growth accelerates until eventually product sales reach saturation point, where everyone who wants the product/ service already has it, finally after a period of time the product or service becomes less relevant and sales fall into a decline as the product/ service is superseded by alternative products or is no longer relevant.
Figure 12 Explanation
Optional Explainer Video – Industry Lifecycle
If you wish to learn more about the industry life cycle model in more detail this 6 min video presents this model in much more detail courtesy of the text book “Strategic Management” by Saloner, Shepheard and Podolny.