Definition
Industries evolve through Introduction → Growth → Shakeout → Maturity → Decline; each stage changes demand, rivalry, and capabilities required.

Introduction
Timing matters. What wins in infancy (experimentation) loses in maturity (efficiency). Align investments and positioning with the stage.

Explanation

Introduction: Uncertain demand; tech fluidity. Strategy—probe & learn, niche focus, educate customers.

Growth: Rapid demand; many entrants. Strategy—scale fast, build brand, secure channels, raise switching costs.

Shakeout: Capacity rises faster than demand; failures consolidate. Strategy—cost discipline, selective differentiation, M&A.

Maturity: Slow growth; price competition. Strategy—operational excellence, customer retention, incremental innovation, adjacencies.

Decline: Substitutes/tech shifts. Strategy—harvest, divest, reposition, or reinvent.

Signals: S-curve adoption, margin trends, exit/entry rates.

Portfolio use: Different SBUs map to different stages → capital allocation logic.

Key Takeaways

Stage-aware strategy improves odds of value capture.

Don’t overbuild in growth; don’t under-invest in efficiency in maturity.

Plan exit options early for decline.

Real-World Case
Smartphone industry: explosive growth (2008–2014), then maturity; leaders pivoted to services/ecosystems and camera/AI differentiation to defend margins.

Reference: IDC/Gartner smartphone market trend summaries.