StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Life Cycle of the Service Industry - Essay Example

Cite this document
Summary
This essay stresses that the service industry, like any other business, goes through the four stages of life cycle. The time taken to advance from one stage to another depends on a number of factors. The stages encompass introduction, growth, maturity and decline…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.8% of users find it useful
Life Cycle of the Service Industry
Read Text Preview

Extract of sample "Life Cycle of the Service Industry"

The service industry, like any other business, goes through the four stages of life cycle. The time taken to advance from one stage to another depends on a number of factors (Diebold & Rudebusch, 2000). The stages encompass introduction, growth, maturity and decline. This essay seeks to describe the service industry at each of these stages regarding demand for technology, products and competition. At the introduction stage, the demand for the service is low because not many people are aware of this industry.

The level of technology at this stage is can be described as juvenile. The products are of a wide variety due to few cases of imitation and replication. Competition is not intense because the industry is yet to be flooded with new firms. For a firm to survive this stage, it needs to advertise its services and take measures to retain customers. At the growth stage, demand is growing because the industry can penetrate the market. Firms are utilizing and innovating new technology. The quality and design of products improves because they now know what the clients want.

Competition is growing because of new entrants leading to mergers and exit of some firms. For a company to survive this stage, it should be creative in the way it offers its services. At the maturity stage, demand is improving due to repeat buying. Customers are also becoming price sensitive. Firms are using innovative technology to beat their rivals and retain clients. Consumers can now differentiate between the firms through their brands. Competition is stiff. Weaker firms are falling out.

A company that survives this stage should have a strong brand, better technology and the muscle to rival out competitors. The decline stage is the final phase of the industry cycle. The demand for the services has gone down due to obsolescence. There is little technological innovation in firms. The services are all similar in the eyes of the consumers. The competition is intense- there are price wars and exits. A firm that survives this stage offers a subsidiary service that is not obsolete.

It also positions its price to attract more clients.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Life Cycle of the Service Industry Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Life Cycle of the Service Industry Essay Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/management/1701338-life-cycle-of-the-service-industry
(Life Cycle of the Service Industry Essay Example | Topics and Well Written Essays - 250 Words)
Life Cycle of the Service Industry Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/management/1701338-life-cycle-of-the-service-industry.
“Life Cycle of the Service Industry Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/management/1701338-life-cycle-of-the-service-industry.
  • Cited: 0 times

CHECK THESE SAMPLES OF Life Cycle of the Service Industry

The Payroll and Personnel Cycle

This essay presents the payroll and personnel cycle which focuses on the monies allocated to the employees through direct labor, which includes hourly wages, bonuses, and commissions, as well as, the monies intended for payroll taxes and associated expenditures.... hellip; As the discussion, The Payroll and Personnel cycle, stresses the payroll and personnel cycle is one that, often, requires diligent monitoring because it is a point where fraudulent acts from within the company can occur....
3 Pages (750 words) Assignment

Marketing Problems and Issues of Cloon Keen Atelier

Products and Services Date Marketing Products and Services Cloon Keen Atelier's Problems and Issues to Be Addressed The firm's problem is mainly threat of competition in the market place that is poised by other great competitions in the industry.... The company is therefore striving to gain market positioning and competitive advantage in the industry....
5 Pages (1250 words) Essay

Discuss the significance of cycle time to quality

In the context of production and manufacturing industry, just-in-time strategy and simultaneous execution of operations is adopted.... Scope and overview of cycle time and quality It is notable that in competitive corporate markets there is increasing demand for more rapid response to clients and customers, shorter product and service and its cycle time.... It is notable that improving cycle time increases product and service quality.... This brings in the assertion that faster cycle time and improved product and service quality are mutually reinforcing each other....
3 Pages (750 words) Essay

Relationship Between Project Life Cycle and Product System Life Cycle

It focuses on low risk strategies, early detection of errors and design flaws and the closely aligns itself with the evolution and growth cycle of the product.... Max Wideman [1], Archibald explains the project life cycle as follows: 'The project life cycle has identifiable start and end points, which can be associated with a time scale.... Relationship between project life cycle and product life cycle In order to comprehend the relationship between project life cycle and product life cycle, let us define them individually first....
2 Pages (500 words) Essay

The Life Cycles of Failed Projects

hellip; According to the report there have been significant failures in the life cycle of most IT projects.... Government agencies in the IT industry have been developing different types of software systems.... On this regard, this paper focuses on a thorough analysis of the subject failed projects via an account of the article, “The life Cycles of Failed Projects - The U....
3 Pages (750 words) Essay

Product Life Cycle Theory

As such, the life cycle of a product can be differentiated into various phases, such as the Introduction phase, Growth phase, Maturity phase, and Decline phase.... nbsp; Based on this belief, economists related the fact of 'Product life cycle' with that of a 'Human life cycle'.... Notably, in the history of marketing, there are numerous products which disappeared from the market because it could not face the challenge in its life cycle....
7 Pages (1750 words) Assignment

The Current Consumer Market of Powerbike

It also comprises the underlying prospects and effectiveness of a cycle enterprise such as Powerbike, if it is transferred into the business market of Bangkok.... The objective of the paper “The Current Consumer Market of Powerbike” is identifying the advantages available for Powerbike in the market of Thailand....
12 Pages (3000 words) Assignment

Environmental Life Cycle Thinking and the Circular Economy

This term paper "Environmental life cycle Thinking and the Circular Economy" discusses the life cycle thinking and the circular economy that is discussed in 5 major parts that is an introduction, the reason for the life cycle thinking, approaches to it, impact on other stakeholders, and lastly, conclusion.... hellip; life cycle thinking and the circular economy are one of the major aims each country is aiming at achieving in the 21st century and beyond....
14 Pages (3500 words) Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us