Industry Disruption Decoded: Understanding Shifts and Trends

                       INDUSTRY ANALYSIS

• LIFE CYCLE ANALYSIS OF INDUSTRY

every industry have 4 stages in the life cycle

1)PIONEERING STAGE OR INTRODUCTION STAGE

in this stage companies are in very initial stage .it is also called as starting stage.if we pick the  stock in this stage may be its risky but at the same time it will be rewarding.ex/ IT SECTOR in late 1950's is at this pioneering stage where now IT DOMAIN is contributing over 13% for our indian GDP.

2)GROWTH STAGE

in this stage the company's are well established and experiencing phenomenal growth,especially growth based investors invest into these company's which are in the growth stage .if we pick stocks of the company in his stage we might see a rapid growth at the same time there is risk in this phase as well present EV SECTOR AND RENEWABLE SECTOR are in this phase 

3)MATURITY STAGE OR SATURATION PHASE

in this stage company's were already experienced growth for 10-15 years.here the industry reaches to its peak cycle .After reaching this peaks companies won't see volume growth but mostly focus on "Premiumization".basically in this stage, investing in these companies is generally considered to be a bit safer.the risk factor is relatively low because these companies have already grown to certain stage and had a great foundation.However,the potential reward is also lower in these type of companies

4)DECLINING STAGE

in this stage industries get revolutionized.it is better to avoid these companies which are in this phase because ,even though they are big companies you will not see the movement in the stock price or might a degrowth.after the entry of JIO indian telecom sector has seen many significant changes were small companies with 2G network had phased many tail winds and some announced Bankruptcy also.

• while investing in certain industry it is important to check the industry's current phase.my opinion is try to invest in stage 1 and 2 companies for dominant returns and with a moderate capital in 3rd stage to bring stability for the portfolio
• check the industry which you wanted to invest in it is in  Long term cycle or a short Short term cycle,as some industries have very short life cycles like during COVID-19 the related to ppt-kits manufacturing increased humongously but now not the same scenario was playing                    MY ADVISE IS GO TO THE WEBSITE IBEF[INDIA BRAND EQUITY FOUNDATION] AND READ THEIR REPORTS ON VARIOUS INDUSTRIES WHICH GIVE YOU A PERSPECTIVE OF WHERE THE ECONOMY IS MOVING AND IT HELPS YOU TO IDENTIFY VARIOUS OPPORTUNITIES HIDDEN IN VARIOUS INDUSTRIES