3-7 Industry Life Cycle Reflects the changes that take place in an industry over time. o Birth stage: firms seek to develop a winning technology. VhS vS. Betamax in video or 8-track vs cassette in audio e Growth stage: Product gains customer acceptance and grows rapidly. New firms enter industry, production improves distributors emerge " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 3-7 Industry Life Cycle ⚫Reflects the changes that take place in an industry over time. ⚫Birth stage: firms seek to develop a winning technology. ◼ VHS vs. Betamax in video, or 8-track vs. cassette in audio. ⚫Growth stage: Product gains customer acceptance and grows rapidly. ◼ New firms enter industry, production improves, distributors emerge