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Business Plan Tutorial: Industry Stage

Industry Stage (Startup, Growth, Maturity, Declining)

3.    What Stage is the Industry in (Startup, Growth, Maturity or Declining)? 

Questions you should answer within your business plan:

  1. Description of the current industry
    1. How can you take advantage of the current industry trends?
    2. How much growth can you expect?
    3. Is this a market you want to go into?
  2. What ideas can you borrow from the competition?  (I.E. Supply chains, distribution channels, points of sales)
  3. What can you do that your competition can't?
  4. What can you improve upon (e.g., make more profitable, simplify, streamline, just-in-time, reduce waste)?

Stage of the Industry

The research that you have done about the industry and the competition should be sufficient to complete this section. 


Telltale signs of the Industry stages:


  • high cost
  • low sales volume
  • no/little competition - competitive manufacturers watch for acceptance/segment growth
  • losses
  • demand has to be created
  • customers have to be prompted to try the product


  • established in market
  • little need for publicity
  • increase in competition
  • prices tend to drop due to the proliferation of competing products
  • brand differentiation, feature diversification, as each player seeks to differentiate from competition with "how much product" is offered
  • most profitable phase


  • economies of scale
  • sales volume increases significantly
  • more profit
  • customers are aware
  • competition begins
  • prices to maximize market share


  • costs become counter-optimal
  • sales volume decline or stabilize
  • prices, profitability diminish
  • profit becomes more a challenge of production/distribution efficiency than increased sales


Industry Stage - UW Restricted

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