Report: Analysis of Smart Speakers Industry Life Cycle

This report provides an analysis of the industry life cycle, focusing on the smart speaker market and its evolution. The report begins by defining the stages of the industry life cycle, including development, introduction, growth, maturity, and decline. It then applies this framework to the smart speaker industry, examining the strategies of companies like Apple, Google, Microsoft, and Amazon. The analysis suggests that smart speakers are currently in a growth stage, with significant potential for expansion. The report also offers recommendations for companies to navigate the challenges of the early stages of product development, emphasizing the importance of market analysis, product innovation, and effective promotion. The report concludes by referencing relevant academic literature on industry life cycles and corporate strategy.

Running head: INTRODUCTION TO BUSINESS
Introduction to business
Name of Student
Name of University
Author Note

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INTRODUCTION TO BUSINESS
Table of contents
Stage of industry life cycle.........................................................................................................2
Recommendation........................................................................................................................3
Reference....................................................................................................................................4

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INTRODUCTION TO BUSINESS
Stage of industry life cycle
The term industry life cycle is used to identify the evolution of a business industry
that is based on the characteristics of the industry in the market. As per Esteve-Pérez, Pieri &
Rodriguez (2017) industry life cycle can be classified into four broad sections that justify the
longevity of an industry. These include development, introduction, growth, maturity and
decline. The development and introduction phrase is the startup phrase in which an industry
develops a product or service with limited information available to the public. The second
stage is associated with the understanding of the customers about the value of a product. A
product reaches maturity during its slow growth with the focus shifting to new products. This
ultimately leads to the decline of the demand for the product and it fades away from the
market in a slow manner (Tavassoli, 2015).
The case study analyses the industry life cycle of smart speakers and its importance in
reputed companies like Apple, Google, Microsoft and Amazon. The analysis of the case
study indicates the fact that the smart speakers are at a growing stage of development as the
companies as well as the people are trying to come to terms with the product. Companies like
Amazon and Google wants to remain with the roots of the business. Microsoft on the other
hand felt reluctant to invest in the manufacturing of smart speakers. However, due to the
competition and the change in time and technology, the use of smart speakers in phones, cars
and at home has become significant. It has already been seen that the sale of the product is
forecasted to be 62 million units by 2022. This is predicted to be a significant rise in the sale
of the product since 2016. Hence, based on the evidence from the case study, it can be said
that the companies need to deal with the challenges that may arise in the early stage of the
industry life cycle.

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INTRODUCTION TO BUSINESS
Recommendation
In order to deal with the early stages of development of the product, companies like
Apple, Amazon, Google and Microsoft need to understand the demand for the product in the
market. The case study highlights an observation made by Watkins that shed light on the
huge hype that products had witnessed at the early stages. However, it declined quickly as the
products did not gain the potential recognition in the market. In the case of smart speakers,
the demand for the product is unknown as most people would prefer useful technologies.
Hence, the companies need to conduct a proper analysis of the market before launching the
product. Furthermore, recent technologies also need to be added to the product in order to
make it multi-functional and prolong the longevity of the smart speakers. The companies also
need to use the reputation it has in order to promote the product in the market. Unlike other
times, proper information about the product needs to be provided in order to increase the
popularity of the product.

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INTRODUCTION TO BUSINESS
Bibliography
Arikan, A. M., & Stulz, R. M. (2016). Corporate acquisitions, diversification, and the firm's
life cycle. The Journal of Finance, 71(1), 139-194.
Bakman, L., & Hashai, N. (2017). Industry Life Cycle, Product Type, and Level of
Exploration in Entrepreneurial Knowledge Intensive Firms. In the world scientific
reference on entrepreneurship: Volume 3: Sustainability, Ethics, and
Entrepreneurship (pp. 363-393).
Esteve-Pérez, S., Pieri, F., & Rodriguez, D. (2017). Age and productivity as determinants of
firm survival over the industry life cycle. Industry and Innovation, 1-32.
Tavassoli, S. (2015). Innovation determinants over industry life cycle. Technological
Forecasting and Social Change, 91, 18-32.