i can’t not really distinguish between industry life cycle and buisness cycle. of couse, i know within industry life cycle there is a pioneer, growth mature and decline phase and the phases of business cycle are contraction expansion and so on. but can someone help me to understand this intuitively…like with an example? thank you!
industry life cycle if more macro and it’s for a industry field buisness cycle is for each company
Edited…
Edited…I swear I only clicked once…
An Industry life cycle is full of shorter Business cycles. I would think of an Industry (Maybe the one your in, that might be useful) The Industry started (pioneered) a long time ago, this is the beginning of your industry life cycle. however, it probably was affected somehow in late 2007, 2008 when the economy took a nosedive, this was a part of the business cycle (probably a contraction) The industry probably survived the business cycle and so goes on with its life. however, at some point it will start to decline and may eventually die, but it will probably see many more business cycles before then.
Business Cycle shows Recessions, Booms of a Macroeconomy Industry Life cycle tells you about a Company’s different growth stages (Pioneer, Accelerating, Mature, Decline)
eighty 's post is kind of opposite of coshair’s post . Who is right?
I’m going with eighty. Business cycle has peaks and troughs. Industry life cycle is the PAMD and can be independent of the business cycle. Example: MP3 business is in the accelerating stage of the industry life cycle, whereas the business cycle is near the trough (i hope)