Five Stages Of Business Life Cycles In A Company

1170 Words5 Pages
Corporations go through life cycles, just as humans do. This life cycle concept also relates to other areas in business such as the products and services, and even entire industries. The number of stages in a company’s life can vary from at least five up to as many as ten. The five most accepted stages are startup, growth, maturity, decline and death. Each stage creates unique challenges for the organization and requires diverse strategies to continue operating at a profitable level. The startup stage, which includes seed and development, is the very beginning of the business life cycle. The brilliant idea for the business venture is merely a thought and requires further research and testing to find out how sustainable it will be. This…show more content…
Marketing strategies are then created to bring product and service awareness to the target market. The second stage in the business life cycle is growth. This stage begins when the company’s products and services are gaining momentum in the market by generating revenue and expanding the customer base. Furthermore, the company will also refine it’s business, sales, marketing, and operations models while being challenged to show customer’s how they have a strong competitive advantage. The company’s strategic goal at this time is to extend the rate of growth as far as possible by launching new products or finding new markets for the existing products. After the growth and expansion comes the maturity stage; the company is at the top of its industry. This stage of the business life cycle sees increasing revenue but at a slower pace. The company’s strategy moves toward findings ways to increase operational productivity that increases profit margins. Other strategies include seeking out new uses for the current products and services that result in increased sales to existing customers. At this point in the business life cycle the company can revert back to the expansion stage to explore new growth strategies or consider the possibility of…show more content…
246). Strategy implementation enables a company to create, apply, and unite its business operations by following strategies that result in the overall goal of increased performance and competitive advantage (Management Study Guide. (n.d.) Strategy Implementation - Meaning and Steps in Implementing a Strategy). To begin strategy implementation the business leaders must determine who will oversee the process being established. The strategy leader will be responsible for intergration of the strategies into the company’s operations and unite the workforce as a team to convey the strategic changes. The strategy leader will need understand the plan, create goals to be reached, schedule progress report meetings, and keep the business leaders informed of the plans

More about Five Stages Of Business Life Cycles In A Company

Open Document