Analyzing Industry Maturity Stages
The Product Life Cycle model can help to analyze maturity stages of products and industries. A constant and sustainable cash flow (revenue) stream from product sales is the key to any long-term investment, and best way to attain a stable revenue stream is to have one or more cash cows. Cash cows are strong products that have achieved a large market share in mature markets. Also, the modern Product Life Cycle is becoming shorter and shorter. Many products in mature industries are revitalized by product differentiation and market segmentation. Organizations increasingly reassess product life cycle costs and revenues, because the time available to sell a product and recover the investment shrinks.