Review: In a typical competitive life cycle, what pattern do we see?
Growth phase: product success, new entrants
Mature phase: market saturates, fewer profits, firms exit industry
Growth phase: product success, new entrants
Mature phase: market saturates, fewer profits, firms exit
Growth phase: product success, new firms
Mature phase: number of firms grows
Growth phase: product success, existing firms extremely profitable
Mature phase: market grows
Few firms start out, but as a dominant design emerges the profitability of the industry becomes attractive, and many firms enter the industry until it becomes saturated. Firms then leave, only a few dominant players remain, and the industry enters a steady state as profits stagnate.