Question

4. 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.

Answer 1

Answer:

Lets talk about the rice industry and discuss it in the light of the stages of of a business;

Introduction: The industry will start small and enter the competition among other rice mills in the area.  

Growth: The company starts to make rapid sales and cash inflow increases.

Shakeout: The sales slow down slowly as the company is covering the distance towards maturity.

Maturity: The company has reached a stage where the cash inflow is stagnant along with the sales. No further growth is happening in the rice mill.

Decline: The company is over run with factors such as market competition and economy. Failure to keep the expenses afloat will eventually decline.