A Qualitative Review of Market-based Company Life Cycle Models

Abstract

Understanding the stages of the life cycle of companies is fundamental to their management and performance, since the characteristics of companies vary according to the moment they are going through. With this focus, the purpose of this article is to identify and analyze the models of the different company cycles found in the literature presenting comparisons with a life cycle model proposed by an author present in the industrial market. The company life cycle models were identified through a systematic literature review that aimed to rescue the perception of several authors. The authors have a similar approach on the subject of the study, and their proposals come from the 1980s and 1990s, characterizing a time gap on the subject. The article contributes to the research on the company life cycle, as it presents models identified in the literature, as well as a perspective of the stages of companies emphasizing a life cycle model used by industries in the market. The article identifies similarities and differences between company life cycle models used in the market and used others in academic scientific circles. The results of the article provide the characteristics of the company life cycle stages to managers of industrial organizations, helping to understand the organization’s moment in the market, as well as to understand the next stages to be developed.

Management of intangible aspects considering agricultural business development

“…In order to diagnose in which stages of the company's life cycle the intangible aspects generate impact, this research uses the model by MICHELIN et al (2022), shown in figure 2. MICHELIN et al (2022) make comparisons between several company life cycle models proposed by authors in the scientific literature and the model proposed by FISK (2009). FISK (2009) uses easy vocabulary to understand for managers present in industries.…”

“…FISK'S (2009) model identifies seven stages in the life cycle of companies: Create, Launch, Stabilize, Extend, Mature, Evolve and Exit. Analyzing these stages helps managers understand the company's context and is essential to overcoming challenges and seizing market opportunities (MICHELIN et al, 2022).…”

“…The division of the next subchapters follows the life cycle stages of companies. The designation of the stages follows the suggestion of FISK ( 2009), but the characteristics of each stage include the comparison of MICHELIN et al (2022). Thus, this research analyzes different factors within each stage of the companies.…”

“…Business founders must develop an initial plan that considers available financial resources, target audience, and costs for their first products (FISK, 2009). MICHELIN et al (2022) compares the Create stage (FISK, 2009) with the "Existence" (LESTER et al, 2003) and "Dating" (ADIZES, 2004) stages. In both stages, the key competencies required for business creation, entrepreneurial skills and creativity, prove essential for market knowledge and solution development.…”

“…In the law of the market economy, the potential for survival of the fittest depends on understanding the process of sustainable development and the stages of the company life cycle, which have effects on the business model and considerable weight in strategic management, which reflects in business performance (MARRUCCI et al, 2022;ZHANG & WANG, 2022). According to MICHELIN et al (2022), the stages of the company life cycle have well-defined characteristics that interfere with the development of organizations. The stages in the company life cycle present different opportunities and obstacles, so the aspects that impact each stage can also diversify.…”