Product Lifecycle Analysis Excel Template

Description
Many studies have been carried out on industries' life cycles. Generally all industries and products start from an emergent phase, move up to the growth phase, then progress to a mature phase. From this point they either restart the cycle due to innovations and improvements to the product or service, or they decline.

This tool is made for reasoning about the maturity of the industry and the maturity of the kind of manufactured products. In order to define the phase in which the company is positioned, one must consider the following:

---> Emergent phase: this area is composed of a small number of firms who generally have low revenues, and usually zero or negative margins.
---> Growth phase: the margins are increasing rapidly, as well as the number of firms.
---> Mature phase: global revenues are increasingly at a slow rate and both the margins and number of firms are decreasing.

In general, after the emergent phase, the dominant standards are defined and the rise of one or more companies is experienced (annealing). When margins increase rapidly, several companies imitate their successful pioneers, and therefore margins begin to decrease, resulting in companies leaving the market (shakeout). The firms that will remain will be the ones who are the most efficient during the mature phase. At the end of the mature phase, there will be either a decline or a disruption thanks to innovation or a demand shift. The whole process will then repeat itself.