Inflection Point

An inflection point, in business, is a situation a company arrives at as a result of any number of events, internal or external, that require management and/or shareholders to make decisions, such as altering strategy or tactics in order to achieve a set of aims, be it to maintain growth, profitability or the share price. An inflection point can be reached as a result of broader political, economic or regulatory change; or as a result of more idiosyncratic reasons: changes in the competitive dynamic due to mergers, R&D, product obsolescence, technology breakthroughs etc.