W3OlugbemigaWilliamsStages-of-the-Business-Lifecycle (1)
.pptx
School
university of Lagos (Nigeria)**We aren't endorsed by this school
Course
BUSINESS A RESEARCH
Subject
Marketing
Date
Jan 12, 2025
Pages
8
Uploaded by CorporalMoon9620
Stages of the Business LifecycleOlugbemiga Williams
IntroductionThe business life cycle explains the process through which a business organization matures and may decline or develop again.Four key stages: These can be described, as the theoretical stages of business development: Start-up phase; Growth phase; Maturity phase; and Decline/Renewal phase.Knowing these stages ensures that strategic planning and decision process is well understood.
Stage 1 – StartupCharacteristicsCreativity, product or service differentiation, identification of opportunities or threats, comparatively low gross income and high risk.ChallengesSources of capital, user acquisition, market access, and challenges with the supply chain.ExampleA tech startup with an innovative technological application that aims at solving relativity mundane problem.
Stage 2 – Growth1Faster growth of salesThe expansion of coverage or spheres of activity, market saturation, and personnel acquisition.2Overcoming such imperative tasks as increasing scale of operating commitmentsCustomer satisfaction, and competition.3ExampleA local café that moves to open several outlets when it feels it has the backing of many loyal customers.
Stage 3 – MaturityMarket key strengths areSecure and assured cash flows, fixed customer base, strong business processes, and return on investments.ChallengesMarket coverage, technological decline, and complacency threats.ExampleBut a retail chain like Walmart is always adapting to remain one of the leaders in the industry.
Stage 4 – Decline/Renewal1CharacteristicsReduced market share, less profit, and operation costs.2ChallengesAddressing issues of strategic innovation in order to stay competitive or when had a strategy of exiting the market.3ExampleKodak is a perfect example of a company that had not adapted to change where digital photography overtook the traditional and was left in the dust but sought to refocus on commercial printing as well as technology.
ConclusionSummary of stagesBusiness life cycle can be classified into four stages commonly known as; Start-up, Growth, Maturity and Decline or Renewal.Key takeawayThese are really important in the long term because you have to be aware of what is happening and then react if necessary.
References•Barringer, B. R., & Ireland, R. D. (2019). Entrepreneurship: Successfully launching new ventures. Pearson Education.•Kotler, P., & Keller, K. L. (2021). Marketing management (16th ed.). Pearson Education.•Osterwalder, A., & Pigneur, Y. (2010). Business model generation. Wiley.