why does the industry life cycle matter 
for companies life cycle stages are important because they can drive strategies and actions related to sales research expenses competition and more for investors understanding life cycles and the stage that an industry or business is in can help them decide whether to get in or out of an investment the bottom linethe industry life cycle refers to the stages of existence that an industry or business experiences from its beginning to its end the four phases are introduction growth maturity and decline understanding the life cycle can help companies manage their operational and financial decisions and activities so that they position themselves to achieve important goals these goals can include product research and development better profitability the implementation of innovative technology expanding a customer base and more 