Citation
Industry Life Cycles
TL;DR
Industries follow predictable lifecycle patterns
Empirical research on industry evolution patterns showing predictable shakeout phases where many competitors consolidate to few. Provides quantitative foundation for understanding market succession stages.
Key Findings from Klepper (1997)
- Industries follow predictable lifecycle patterns
- Entry rates peak early then decline
- Shakeout phase reduces competitors dramatically
- Survivors differ systematically from exiters