Technology life cycle

1. Fluid
   1. In the fluid phase there is a great deal of product and Market uncertainty.
   2. Firms are not quite sure what should go into the product.
   3. Customers too may not know what they want in the product.
   4. There is competition between the new and old technologies as well as between different designs using the new technology.
   5. Product quality is low
   6. Cost and prices are high, economies of scale and learning have yet to set in.
   7. Market penetration is low and customers are largely lead users
2. Growth or Transitional
   1. The transitional phase sets in when some standardization of components, market needs, and product design features takes place
   2. A standard or common framework for offering products or services emerges signaling a substantial reduction in uncertainty, experimentation, and major changes.
   3. The customer base increases from lead and high-income users to mass market during the growth phase.
   4. Many firms find out that they do not have what it takes to compete
   5. The number of entries decreases drastically while the number of exits increases tremendously.
3. Stable
   1. In the stable phase (or mature phase), products built around the common framework or standard proliferate.
   2. Products are highly defined with differences fewer than similarities between competing products.
   3. Demand growth slows considerably with most output earmarked to satisfy replacement needs.
   4. The total number of firms in each industry decreases considerably from the peak of the growth phase.
   5. In this phase, a firm’s strategies focus on defending its position and watching out for the next technological change that could start the life cycle over again.