Posted in Marketing and Strategy Terms, Total Reads: 493
Definition: Development Stage
A firm is said to be in the development stage if it is still trying to establish itself and is in an early stage of its corporate life. The main focus of a firm in the development stage is research & development and market research. Firms also construct their manufacturing facilities during this period. Market research helps to generate new ideas for product development. A Firm looks for venture capitalists to fund their projects due to lack of monetary resources.
Company’s success is highly unsure in this phase. A successful product might uplift the company, but a failed one might just close it. It’s very difficult for the firms to generate revenues and earnings, also chances of profits in the future will vary from firm to firm.
It is very important for a firm to survive in this stage so as to establish itself in the market.