Elements of Hockey stick effect:

The cumulative cash flow from investment


Key determinant of value is planning period of competitive advantage


To the point (M year 7 in figure) when additional cash flows decline or to point (N or P) when no further net cash flows are coming.

Industry competitiveness, lifecycle, emerging vs mature influence on turbulence and risk


To decide about the length of a resonable planning period.

Source of Hockey stick effect:

Henley Business School