Question

Blossom Computing had its IPO three years back. Currently it has a market Valuation of $...

Blossom Computing had its IPO three years back. Currently it has a market Valuation of $ 20 .1 Billion , and has $ 4.2 Billion in assets. Its sales growth rate since the IPO ha s averaged 23 % as against an industry average of 7% . Blossom Computing is at what stage of its life cycle?

Since Blossom Computing had its IPO three years ago, it is most likely in the Rapid Growth Period. The Rapid Growth Period usually lasts around 3-10 years. Another indication of Blossom Computing being in the Rapid Growth Period is due to its high market valuation coupled with an extremely high growth rate.

Homework Answers

Answer #1

Blossom Computing is at Growth stage of its life cycle since its sales growth rate is good and also it had its IPO 3 yeras back and Rapid Growth Period usually lasts around 3-10 years.The duration of the growth stage, as all the other stages, depends on the particular industry or product line under study. Also, Rapid Growth Period is due to its high market valuation coupled with an extremely high growth rate.During the growth stage, the life cycle curve is very steep, indicating fast growth.The business is consistently generating revenue Rapid-growth industries enjoy exceptionally good sales and bring innovation. They are industries that emerge from the start-up stages to a welcoming consumer base.

Hence undoubtedly Blossom Computing is at Growth stage of lifecycle.

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