Embryonic
The first phase of an industry's life cycle: small demand, high costs and prices, and extreme failure rates while the product and its market are still being established.
Where you will meet it
Embryonic appears in 2 learning outcomes on the CFA syllabus. A few of them:
- Explain the industry life cycle and what follows from each stage
“Industries pass through embryonic, growth, shakeout, mature and declining phases.”
- Assess trends in how large an industry is, its growth, its profitability and the market shares within it
“Growth separates volume from price and cyclical from structural change, and an industry's stage in its life cycle (embryonic, growth, shakeout, mature or declining) shapes both growth and competition.”
See also
Practise it
Practise embryonic until it is automatic: questions that explain every wrong option.
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