The Growth stage – An industry in its expansion phase

As the product slowly attracts attention from a bigger market segment, the industry moves on to the growth stage where profitability starts to rise. Improvement in product features leads to easiness to use, thus increasing value to customers. Complementary products also start to become available in the market so people have greater benefits purchasing the product and its complements. As demand increases, product price goes down which further increase customer demand.

At the growth stage, revenue continues to rise and companies start generating positive cash flows and profits as product revenue and costs break-even.