ship breaking

Industry life cycle: The development and selection of an appropriate management technology and planning system is conditioned by the possibility of linking information about the past, present and future development of complex interactions between the company and its environment. The possibility of interactive linking of internal and external environment and their features influences the behavior of companies and/or its parts. The type, intensity and direction of development of the relationship of internal and external environment define how the firm achieves goals set forth by the chosen strategy of the firm. Therefore, it is of great importance to understand the concept of life cycle, which connects business (especially strategic) decision making with the development of the outer complexity of the firm. Successful products go through four phases of development, and this is the traditional life cycle of an industry.
According to the industry life cycle concept, the industry is the most important part of the environment of a firm. Its properties and power determine the competitive struggle and its structure affects the rules of competitive contest, and thus the necessary strategy for survival and development. The life cycle of an industry can be described with respect to the degree of dynamics of development of process and product innovations. Criteria for distinguishing changes of individual phases are increase/decrease in product and process innovations.

Just like every other industry, the ship-breaking industry has the following phases –
1. Introduction phase of the industry life cycle: Emerging industries are new or reformed industries that originate from technological innovation, changing the relationship between relative costs, new customer needs or other economic and social changes. Ship breaking industry is no exception to this. From early 60’s to till now there has been lots of technological innovation included to this industry. However yet the