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