Industry Life Cycles
TL;DR
Industries follow predictable lifecycle patterns
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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