To determine: The industry life cycle that would affect the business strategy for the firm.
Introduction:
Strategic management refers to formulating and implementing the way to achieve the goals by considering available resource and the internal and external environment. It will be framed by the top management on behalf of an organization.
Explanation of Solution
Determine the industry life cycle that would affect the business strategy for the firm:
The industry life cycle stages are introduction, growth, maturity, and decline. In the introduction phase, the firm would frame the objective to seed the future growth of the company. Here, the firm would start spending more on research and development and in marketing. The unique feature of the products and performance would be decided.
In the growth phase, the firm would create a strategy and take necessary actions to be in a strong strategic position. The process innovation would be emphasized using research and development to move towards manufacturing and marketing capabilities.
In the maturity phase, the firm will try their best to maintain the strong strategic position. There will be intense price competitions in the phase.
In the decline phase, the firm can claim their market share through integration, differentiation, or cost-leadership strategy. Exit, harvest, maintain, or consolidate are the options that are available in the decline phase. The firm should consider choosing one option.
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