Gr8 Ship (pronounced Great Ship) is a brand new company that is considering entering the air express industry. The company’s leadership and investors include some of the top names from companies in the shipping and freight sectors. They are willing to invest big money on infrastructure to get up to speed quickly, but they want to know what else they should be looking at.

The company’s leadership team has asked you to provide industry analysis, providing insights from the past 40 years to serve as a foundation for the new business’s strategic plan.

Industry Life-cycle

Your assessment of the life-cycle stage of the industry can have major implications for our company strategy. Which description of the industry would you present as your analysis that will guide Gr8 Ship’s entry plans?

Which one

(a)The industry is a mature consolidated industry with just a handful of established players. The market has reached saturation, and there is no way to bring new customers into the segment.
(b)The industry has been in a shakeout phase for most of its 40-year history with competitors coming and going. Innovations are reshaping the industry all of the time.