Answer to Question #260031 in Management for Paia

Question

Is the evolution of industry structure from an emerging industry to a mature industry to a declining industry inevitable? why or why not?

Answer 1

The enterprise life cycle includes 5 unique degrees – start-up, growth, shakeout, adulthood, and decline. Emerging industries are part of the start-up level due to the fact corporations generate minimal sales, there may be a lack of a patron base, the delivery chain is underdeveloped, and the public is unexpected with the new product. 

Corporations from such industries are not expected to grow at an equal pace which can have characterized the sooner stages of improvement. This can be because the industry already drawing near the point of market saturation in terms of reaching be had clients.