Ice Cream Industrygrowing while others are declining, the performance of companies will depend among other things upon the state of the industry as a whole and the economy. If the industry prosperous, the companies within the company may also be prosperous although a few may be in bad shape. The share price of the company is empiricallyfound to depend up to 50% on the performance of the industry and economy. To analysis the industrial performance one should follow three steps.
Industry life cycle analysis
Study of the structure& characteristics of an industry
SWOT analysis1. Industry life cycle analysis:(Product life cycle theory)Many industrial economists believe that the development of almost every industrymay be analyzed in terms of life cycle with four well defined stages.Pioneering stage :( Introduction stage)The stage is characterized by introducing of a new product and uptrend in business cycle which encourages new product introductions. Demand keeps on growing atan increasing rate competition is generated by the entry of new firms to grab the market opportunities weaker firms face premature death while stronger over survive to grow and survive. This stage is mainly suitable for a speculator.Rapid growth stage: (Expansion stage)Firms which enter in pioneering stage will concentrate on expansion of their sales & profits in this stage. It is suggest to the investor respond quickly & invest more in this stage. The market continues to grow but slowly offering steady and slow growth to sales of industry. It is a phase of consolidation wherein companies establish durable policies relating to dividends and investments.Maturity stage:SVITS School of ManagementPage 3