Life-Cycle Analysis

The life cycle models have been used in different fields of industrial studies in order to explain the evolution of industries, products, and technologies. The assumption is that the life cycles of technologies and products follow similar patterns of the living beings. Therefore, changes are easily predictable and life cycle models may capture the maturity of a technology and the trends of its evolution.

In life cycle analysis four stages can be distinguished in the evolution of a product or technology: introduction, growth, maturity, and decline.

• Introduction: a new product / technology is introduced into the marketplace. Only one or two firms have entered the market, and the competition is limited. The rate of sales growth depends on the newness of the product. Generally, a product modification generates faster sales than a major innovation. The technology performance of the innovation increases slowly.
• Growth: a new product gains wider consumer acceptance and the objective is to expand the range of available product alternatives. Industry sales increase rapidly as a few more firms enter the marketplace. To accommodate the growing market, modified versions of basic models are offered. Successive incremental innovations increase the technology performance rate of the product.
• Maturity: industry sales stabilize as the market becomes saturated and many firms enter to capitalize on the still sizable demand. The possibilities of increasing product contributions are limited. Innovations are less frequent. The technology performance rate stabilizes.

Check also

http://www.cfd.rmit.edu.au/outcomes/papers/LCA-CR.html