Cookie- und Privatsphäre-Einstellungen

Diese Webseite nutzt Cookies, um essenzielle Funktionen wie den User-Login und Sessions zur Verfügung zu stellen. Wir nutzen zudem Cookies und Software von Dritten, um Dein Surf-Erlebnis auf preplounge.com zu verbessern. Du kannst entweder nur essenzielle Cookies oder alle Cookies akzeptieren. Du kannst Deine Einstellungen jederzeit in unseren Cookie- und Privatsphäre-Einstellungen ändern. Dieser Link ist im Footer unserer Seit zu finden. Wenn Du mehr Informationen benötigst, besuche bitte unsere Datenschutz-Erklärung.

Datenverarbeitung in den USA: Indem Du auf "Ich akzeptiere" klickst, willigst Du zugleich gem. Art. 49 Abs. 1 S. 1 lit. a DSGVO ein, dass Deine Daten in den USA verarbeitet werden (von Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

Einstellungen individuell vornehmen Ich akzeptiere
Melde Dich an und erhalte kostenlosen Zugriff auf über 50 Artikel.
Jetzt kostenlos registrieren >>
BootCamp-Artikel

Gelesene Artikel: 0/52

Assess the maturity of a product and its financial implications through the Product Life Cycle

The product life cycle is a way to map the common stages a product undergoes throughout its lifespan. The product life cycle is typically divided into 4 different stages, each having specific strategic decisions affecting profits and revenues:

(1) Introduction: In the first phase, the product is introduced. Normally, at this stage there are a few competitors and customers. Therefore, sales and profit are low and the risk that the product will not succeed is high. In order to boost sales the focus lies heavily on promotion activities.

(2) Growth: Products that succeed in addressing customer’s needs will lead to an increase in sales. Advertisement is still a key component to promote further growth.

(3) Maturity: At this stage the product can be seen as well established and widely accepted within the targeted customer group. Profits are high and risks are low. Typically in this phase, competition increases. To keep the market position and expand this phase, companies often employ strategies such as introduction of complementary or updated products or simply invest in marketing activities.

(4) Decline: At this point, the product may not fulfill the current needs of the customers and sales start to decline. The important decision at this stage is deciding when to take the product off market such that the client optimizes financial gains and minimizes losses due to time and investment.

The Product Life Cycle

Implication of the Product Life-Cycle on Profit, Revenue, Competition and Risk

Introduction

Growth

Maturity

Decline

Profit

Low

High

High

Low

Revenue

Low

High

High

Low

Competition

Low

Increasing

High

Decreasing

Risk

High

High

Low

Low

Key Takeaways:

  • The product life cycle describes the 4 phases a product goes through.
  • These phases can be divided into Introduction, Growth, Maturity and Decline.
  • Each phase has an impact on profit, sales and company’s strategic decisions.

Verwandte Cases

Top Apparel

4,9 Tsd. mal gelöst
Top Apparel Our client is Top Apparel. They own a portfolio of 15 brands of fashion. Historic growth has been in line with the market and the company is making good profits. Now management wants to invest money to grow the portfolio, but they are unsure on how to prioritize investment.  The client has asked us to help them determine which brands should get investments for future growth.     
4.4 5 563
| Bewertung: (4.4 / 5.0)

Our client is Top Apparel. They own a portfolio of 15 brands of fashion. Historic growth has been in line with the market and the company is making good profits. Now management wants to invest money to grow the portfolio, but they are unsure on how to prioritize investment. The client has asked us ... Ganzen Case öffnen

ChemCo Foods

4,1 Tsd. mal gelöst
ChemCo Foods A chemical producer is a major manufacturer of chemical products used to preserve foods in containers. The company has seen an increase in market share, but the company has also seen a decline in profits. Our client, the CEO is worried about this trend and hires you to investigate what is going on. 
3.9 5 580
| Bewertung: (3.9 / 5.0)

A chemical producer is a major manufacturer of chemical products used to preserve foods in containers. The company has seen an increase in market share, but the company has also seen a decline in profits. Our client, the CEO is worried about this trend and hires you to investigate what is going on. ... Ganzen Case öffnen

Telephony Technology Warehouser

3,7 Tsd. mal gelöst
Telephony Technology Warehouser We are a warehouser (B2B) and have been facing a decline in profits since past 2 years. We would like you to figure out why this is happening and provide recommendations to reverse this trend.
4.2 5 288
| Bewertung: (4.2 / 5.0)

We are a warehouser (B2B) and have been facing a decline in profits since past 2 years. We would like you to figure out why this is happening and provide recommendations to reverse this trend. Ganzen Case öffnen