The Periods Of Product Life Cycle

The product life cycle is a way used by business to attempt to gauge the life span of something so that as a calculated attempt to forecast the product with the changes in market demand in order to remain competitive. The four periods that contain the product life cycle is introduction stage, growth level, maturity level and decline level. As the merchandise flows through the four stages, marketing mixes and strategies are executed to foothold staying power and remain competitive against newcomers and transitioning old competitors.

The introduction level is the first level of the product life routine and can be viewed as the developmental level. Theodore Levitt (81) article "Exploit the merchandise Life Routine" suggests this stage is the original unveiling even before there's a proven demand for the product (81). A good example of this stage is the Plug-in cross types electrical power vehicles (phev). This relatively new notion had a direct adverse effect on Toyota's cost restoration performance. Toyota was seeking a fresh market segment which acquired no previous track record to use as a compass, therefore there original entry was filled with uncertainties and unknowing hazards.

The introduction stage is also the most high-risk for the pioneer as the trailblazer absorbs cost while they assess the penetration price considering over head bills and potential profit spreads. It is not strange for a firm to be the only manufacturer developing the concept at this time as competitors try to save initial investment capital by allowing another company to pay for the test pilot. It is also during this stage that the maker begins reducing operational costs, commercial risk and try to enhance the product to get improvements in income. The pioneer of the merchandise anticipate sluggish sales with relatively minimal likelihood of cost recovery, nonetheless they also anticipate a gradual expansion in sales which sets them in place for the next thing of the merchandise life cycle which is expansion.

During the progress stage, which is the next phase of the merchandise life cycle, there is a gradual rise in consumer demand and sales begin to take off. The trailblazer may have a hook edge over competitors because they could have planted their foot and have the first-movers benefits. Fernando Suarez and Gianvito Lanzolla (121) article "The Half-Truth of First -Mover Benefit" assume that if the business have a solid brand name, sturdy financial support and excellent marketing skills, the pioneer may maintain staying power. The article makes reference to the brand of Sony suggesting that its brand name paired using its exceptional degree of product quality allowed those to take a stable hang on the walk-man industry.

The growth level might not exactly be the stage where cost restoration is optimal. The initial firm may have launched the merchandise, however if the concept proves to be rewarding, then brutal competition will enter in changing the market from blue waters, where there was relatively no competition, to red waters where competition is brutal. The pioneer edge may be the actual fact that their name was the first mounted on the product, however the opponents may now be able to duplicate the merchandise at cheaper cost and correct glitches, therefore introducing the same product, with possible better quality, but the competition generally take advantage of the pricing to increase rate on go back. Youngme Moon (88) article "LIBERATE From the merchandise Life Cycle, " shows that the original tunnel vision approach to the merchandise life cycle might need broadening if competition becomes to fierce or if anticipated sales are not satisfactory.

The article continues on to state that as companies go through the product life pattern that marketeers can intuitively defy the guidelines of the life cycle and restrategize their marketing setting in order to get back or capture a more substantial part of market show. During this stage the trailblazer anticipates a cost recovery for the merchandise, however the first launcher of the product must commence to deal with for product and brand differentiation. In the event the originator does not have a sustainable brand then customer devotion may sway. Also, even although first movers advantage may be a secured asset, late entry competition tactics such as improvement in technology, and the necessity to lower profit margins to determine its market show may have a primary impact on the originator cost recovery performance.

However, there are marketing methods that the originator can take to combat for market show. Author Youngme Moon (88) shows that the pioneer could use marketing positions or repositions, where the product is sold in unforeseen ways allowing the company to change the way the customer mentally categorize the product so that they can fight for its share of the market. During this growth level, the demand for the merchandise is still growing and for that reason promoting the merchandise to reach a broader audience is another strategy to seize more market share.

(http://www. soopertutorials. com/business/marketing/2431-product-life-cycle. html)

The third stage of the merchandise life pattern is the maturity level. Through the maturity stage competition is dueling and the waters have converted from blue waters to red waters. The maturity level also plateaus the costs which can be slashed as competition commence to combat vigorously for market show. During this level corporations begin to provide incentives, offers and exceptional level of quality of service to differentiate themselves from opponents to support and gain market show. That is also the point where there's a drop in a business's cost restoration performance as the direct cut in price along with all the current incentives have a primary effect on the profit percentage.

During the maturity level, the product risk turning from being market motivated to market travelling. Nirmalya Kumar, Liswa Scheer, Philip Kotler (1) writers of this article "From Market Driven to advertise Driving" shows that countless pioneering companies who've chartered blue waters revolutionized existing sectors through invention and creative imagination are market travelling rather than being market motivated. The maturity stage of the merchandise life circuit is one of market powered. During this cycle, the originator fights to hold its position and makes direct contact with the customer to commence to distinguish itself from opponents and try to remain in the marketplace. This aspect in the product life routine is also when the merchandise features may be improved and the customer may be given more bang for their buck.

A prime example of this stage is the recent competitive bout for the new car buyer. The auto makers were experiencing a sharpened decrease in new car sales, therefore Basic Motors, DaimlerChrysler and Ford, which are deemed the top 3, offered huge incentives to lure customers in to purchase pre-manufactured automobiles. Incentives such as rebates, amenities, low interest levels and other bait and connect techniques were offered. This portion of the product life cycle because of this particular example unveils an adverse influence on a business cost recovery performance.

(http://www. anskypoker. com/2010/02/the-poker-life-cycle/)

The final level of the product life pattern is the decrease stage. In this period, saturation becomes endemic and sales commence to decline while survival methods commence to surface. Challengers may get started to merge, buy others out or the weaker ones may withdrawal. During this stage cost restoration performance is highly declining and product refocusing must be made. It is in this stage a marketing blend decision can be employed to salvage the product and plateau expenses.

The decline stage permits the reposition for progress via breakaway placement or reverse setting. Youngme Moon (92), author of "Break Free From the merchandise Life Pattern" points out that with breakaway placing an adult product can be repositioned for expansion by combining top features of distinctly different categories. The author also goes on to say that reverse setting can be utilized by adding some new components and stripping away old characteristics which can switch a product backward from maturity into the growth period. The advice can push away severe cost recovery performance and allow a corporation to turn back again to a lucrative stage.

The product life cycle contain four levels and is generally used by corporations as a measure to keep track of their products performance. The first stage is your release stage where the product is launched in to the market. The second level called the progress stage is where the corporation is most likely to retrieve their cost recovery performance. The 3rd stage considered the maturity level is where competition becomes fierce and sales get started to decline. The ultimate stage of drop is when the market becomes to saturated and profitability margin pass on is too slender and weaker competitors must restructure in order to remain in the loop.


Kotler, P, Kumar, N & Scheer, L. 2005. Market Driven to From Market Travelling. Harvard Business Review 1-12

Lanzolla, G. Suarex, Fernando. 2005. The Half-Truth of First-Mover Benefits. Best Practice 121-127

Levitt, T. 2005. Exploit the Product Life Routine. Harvard Business Review 81-93

Levittt, T. 2006. What Business HAVE YOU BEEN In? Harvard Business Review 127-148

Moon, Y. 2005. Break Free From the Product Life Routine. Harvard Business Review 87-92

Roberts, J. 2005. Defensive Marketing How a Strong Incumbent Can Protect Its Position. Harvard Business Review. 150-170

5. To what extent does one agree with the declaration that "an evergrowing product market is a necessary precondition for attaining superior production"? Discuss using a protracted example.

The first important aspect that a person must consider is the functional implications of this is of "achieving superior productivity" as well as the defining the term "growing product market". This newspaper will discuss functional types of companies which have achieved superior efficiency.

Measuring "Superior" Productivity

Productivity is often defined as a ratio of any volume measure of end result to a volume measure of source use. There are various measures of productivity; the desk below provides few basic conditions that are set in order to evaluate efficiency (Weir 2002). The actions are not self-employed of each other. Each of these measures have their own interpretations and advantages, however production measurement is beyond your scope of this paper. The concept of total or multi-factor output has been developed to gauge the contribution of most factors of development to production growth(Centre for the analysis of Living 1998).

Superior output is often an results of technological developments which may have been created by the companies' designers in an try to give their more quality products. What must be realized is the type of market the business functions in, because this can determine the sort of resources they have (Rickman 1995). In a very competitive industry, most companies would like to achieve superior efficiency however if it is a slower industry, production might not exactly be the only source of concern. However, the main problem in particular by industry, is the fact that productivity options are very sensitive to the sort of statistical devices used.

To be able to understand whether growing product growth is a precondition for superior production we must first understand the expenses associated with increasing efficiency. The basic costs involved are the costs of superior capital resources (in the form of machinery and adding the latest technology) and superior labour resources (more skilled labour with a more advanced skill set).

(Measuring Efficiency: OECD Manual)

Increase in Labour Input

(Measuring Output: OECD Manual) Labour still remains the main part of the production process. It really is not enough to depend the number of labourers working, a more accurate solution is looking at the amount of time the labour power is working. However, many concerns have been lifted on the non-wage part of the income for employees (stock options) or the treating self-employed.

The diagram on the right shows how the total hours did the trick by the total force. Calculating this number as the genuine productivity cannot be measured without this. Important factors that we must incorporate are normal working time, absences, holidays, etc.

The implications of this shape are that it ought to be reduced to the very least without affecting the overall output of the business.

"The fully burdened labour cost for a skilled technical professional is normally in the neighborhood of $75 to $125/hour. Let us use $100/hour within an example to keep it simple. The burdened cost to hire a group of 20 designers at $100/hour is around $347, 000/month, where in fact the day is filled up with interruptions and delays. Also, the labour may be generally slower scheduled to lack of proper skills and time management. Technology helps us stay linked but at the same time provides additional channels for interruptions" (Pritchard 1995). Therefore by slicing labour costs effectively one should have the ability to add value. This leads us to assume that productivity can't be increased without investment in making the labour more beneficial. This can be done in several ways(Industrial Systems Research 2008)

Physical-organic, location, and scientific factors;(Investment in location and physical working conditions)

Taking into consideration employee's ethnic environment, what motivates them and possibly adding working bonuses. (Investment in reimbursement packages to raise the overall desire levels in the labor force)

Investing in training and skill building workshop's to allow for more specific innovativeness.

Increase in Capital Input

The profitable capacity of capital should be assessed by how much number it can produce with minimal resources (Edgett 2008). With all the latest technological advances the fruitful capacity of capital boosts however, this upsurge in production comes at the expense of hiring this more costly capital. Depreciation and the age-price account are the two important factors as it pertains to valuation of capital investments.

A common problem that individuals make is assuming that a rise in capital investment will generally suggest improving production. The graph below shows that there has been more emphasis being paid to increasing capital investment alternatively than increasing capital efficiency. This means that the "right" kind of capital may not be being employed. This development can generally be seen by various countries all over the world, however to a greater extent by producing countries. The shape below illustrates this happening. Once again, we should understand that companies must work more towards making capital more productive. This can be by "Larger use of the successful park"(Cooper 1999) which is to reduce the capital/efficiency percentage by using current creation capabilities which is performed through increasing work hours.

Practical Example

The internationally competitive dynamics of the motor vehicle market and how big is the united states in this market would be good example to make use of when discussing productivity. Once we saw, initially some of the non-US oe manufacturers (OEMs) had clear production advantages which allowed these to create significant competitive pressure in the US market.

Between 1987 and 2002, THE UNITED STATES development of new vehicles (including parts and assembly) saw a rise of 3. 3% per anum in labour output. The hours required to produce the parts and assemble a vehicle fell, even while the common value-added per vehicle increased time worked fell because of process inventions, shifts in market share to more fruitful players, and changes in product mix. In manufacturing, predicated on employee outcome, it was projected there would be an increase of 2. 4% per anum in efficiency, excluding the high-tech and car sectors. (MCKINSEY)

Even though the automotive market provided the incentive for change, in america growth in creation was mainly due to the actions created by General Motors, Ford and Chrysler. The reason why the performance was so bad was because each of the companies were slashing prices as they were at gridlock in competition of quality and sturdiness. Therefore they had to create some form of advantage by having greater output. (MCKINSEY)

Productivity and success have a dynamic relationship. In market where two companies are selling the same good's with usage of the same factor inputs, if one of the companies have the ability to increase output the other company would have to also match its opponents. This is due to the fact that if production is increased the business would be able maintain its quality and level of goods and services with less labour costs or materials. Once both companies are at the same degree of production, price becomes the main area of competition. Which is where the US auto industry stands, it still is an evergrowing market for all types of international manufacturers, which is the perfect reason why more emphasis is being paid on increasing productivity.


The costs associated with increasing efficiency can be mind-boggling to any company however the great things about this "superior" productivity can in most cases justify the expenses. A growing product market can only just supply the necessary income and incentives to encourage companies to boost their production (Love 2001). If the market was at a mature stage and didn't supply the necessary revenue to balance the expenses, the company would rather look for cost-reduction or product differentiation to make much higher profits so in conclusion a growing product market is a necessary precondition for achieving superior production.


Cooper, R. (1999). Product Development for the Service Sector: Lessons from Market Market leaders. Perseus Books

Edgett, S. (2008). Maximizing Production in Product Creativity. Research Technology Management, Vol. 51

Love, P. (2001). Driving a car Productivity in Product Technology. Management Services, Vol. 45, January

Pritchard, R. (1995). Production Dimension and Improvement: Organizational Case Studies. Praeger Publishers

Rickman, D. (1995). Differences in State Unemployment Rates: The Role of Labour and Product Market Structural Shifts. Southern Economic Journal, Vol. 62

Weir, D. (2002). Will Efficiency Build you a Fortune? Futures, Vol. 31, August

McKinsey Global Institute (2005). Increasing Global Competition and Labour Output: Lessons from the US Automotive Industry.

Industrial Systems Research(2008). Developing in Britain: a survey of factors affecting progress and performance running a business, Fund and Investment Information.

Centre for the analysis of Living(1998). Requirements Productivity: Key to Economic Success.

3. From what scope can improvements in fruitful movement and product quality lead to an increase in sales and revenue? Use samples to critically study the links.


The main target of any business is revenue making which it derives by making its products and services open to people. The business enterprise models therefore, can be described as value propositions for various stakeholders that the management evolves strategies and methodologies to build goods and services in a few particular industry and offers the same to the required target group or customers. It clarifies how the business would function, identify the products and services that might be produced for identified customers, ensure the viability of the objectives and goals of the business to deliver beliefs based services. Inside the modern day environment of highly competitive business, ground breaking managerial procedures become crucial for increasing profitability without major capital investment. The newspaper would therefore concentrate on how the improvements in productive circulation and product quality would impact on businesses' sales and income.

Productive movement and quality product

Productive flow broadly defines the streamlined process of processing goods and services which have minimal flaws. Thus quality products are essential product benefits of productive flow within a manufacturing facility that greatly facilitate in achieving the demands of the customers. The streamlining of the various interactive processes becomes intrinsic to the quality control mechanisms that significantly help lower the entire cost of development. In the modern times of leading edge competition, Juran (2000) asserts 'all quality improvement occurs on the project-by-project basis and in no other way'. This is the groundwork of quality assurance techniques and application which the organizations follow in order to meet up with the challenges of the time and maintain or increase their profit and sales.

Byrnes (2003) asserts that product circulation management is a robust 'revenue lever that can increase profits while raising customer service levels'. Thus, the organizations consistently make effort to identify factors and issues that would help produce the desired end result with efficiency and unequaled proficiency. The many procedures that can reduce time span and proficiently deliver results are used to increase income through quality products that corroborate with the changing customers' requirements. Small and big organizations like General Motors, Samsung, Sony, Ford etc. have all redefined their proper goals to meet up with the changing formula of global business that primarily focuses on customers' personal preferences and their satisfaction.

How it influences the income/ profit

Byrnes (2003) further boasts that 'product move management ties closely with service period management because the most costly product circulation variance occurs in the center product/core customer quadrant of the customer service matrix'. The discrepancy in product development and customer requirements adversely influences the profits. Minimizing variance and increasing on operational operations leads to more sales. Thus, improvements in efficiency that are intrinsically aligned to the changing tastes of the individuals promote sales and profitability of the organizations. Indeed, modern environment of downturn and tough economical condition, necessitate firm to come up with quality goods at low priced thereby guaranteeing good profit margin. Hence, Six Sigma method of creation becomes highly appealing for improved success of the companies.

The improvement initiatives of business processes have been major imperatives of the corporate world across the globe (porter et al. , 2000; Laraia et al. , 1999; Karltun et al. , 1999). The traditional method of business has fast transformed into an integration of varied interacting components of the business enterprise that work cohesively to create optimal results. Indeed, techniques like JIT (just with time), benchmarking, TQM, slim creation, Six Sigma, HIKE etc. have become important materials of business techniques that have substantial effect on the sales and profits of the businesses (Karim, 2009; Russel and Taylor, 1999; Kaplan and Norton, 1996 ). The use of these initiatives in the original process of development significantly improves the quality and escalates the performance result of the organizations. Indeed, Mannan and Ferdousi (2007, p. 2) have properly announced that 'now the key to contending in the international market place is to concurrently improve both quality and output on continual basis'.

Lean production streamlines the production processes by determining and removing the extraneous activities and 'noticeable' wastes that do not contribute to the reliable product activity (Womack and Jones, 1994; Papadopoulou and Ozbayrak, 2005). The wastes are evident and therefore easily removable. They are good initiatives for increasing productive move for small projects where low investment is the necessity of the hour.

Six Sigma is the technique of business functions that eliminates flaws thus promoting the product quality production at low priced (Mikel, 1998). It is employed when the condition within the procedure is not noticeable. It was the brainchild of Motorola that was later used by the automobile industries to be able to facilitate and improve development techniques. The strategy includes simultaneous inputs from various different departments in order to measure, review, improve and control the development of services and services.

Integration of improvement processes within the industry

Through focused way, the companies develop powerful business ways of identify the critical factors of change and meet up with the challenges with creative inputs through collective perspective and distributed goals. Indeed, '. . strategy must be a dynamic tool for guiding the introduction of a company over time' (Montgomery, 2004). The changing dynamics of the global business has necessitated creation and incorporation of management strategies that go beyond the realm of individual company's matter and arrange for distinctive competencies to provide the business market command.

Case study of PACCAR is an exemplary exemplory case of how innovative practice in creation of quality goods significantly impact performance and sales. PACCAR is a multinational technology company that is experienced in advanced heavy duty vehicles, professional winches etc under various brands. It retains an exceedingly high standard of quality. Through the evolving procedure for entrepreneurial creativity, it's been able to assess the challenges confronted by the company in getting together with all its seeks and objectives within the framework of its theory and professional and organizational ideologies. They have incorporated Six Sigma strategy within its various business operations. It has also complemented its six sigma strategy with HIKE or high impact Kaizen incidents to create new concepts of production move improvement (PACCAR). Indeed, it's been ground breaking in its method of tackle the far reaching implications of the changing technology and swift globalization process through well identified and identified tactical goals and visions.

In these difficult times, the demand of products and services has considerably come down and the customers want for deal products which can be low priced but offer quality. The firms, therefore, are also forced to trim cost and therefore, the prices, if you want to use profitably. Ford Cars is another flagship business that has maintained its market position through tactical productive flow for better quality products resulting in more sales. It has developed strong business strategies that might be able to identify the critical factors of change and meet up with the problems with creative inputs through collective perspective and shared goals (Ford). Thus, timeliness, rates and quality become major factors to gain leverage. Hence, new product management must include exigencies so that the three factors can collectively be contacted to make the product captivating for the individuals while at the same time, encourage creativity and innovative practices that give a unique perspective to participatory methodology of management and employees.

One of the very most interesting and essentially the most noticeable strategy of quality products has been that of McDonalds. McDonald's commercial strategy mainly relies on creating value through client satisfaction. It has been in a position to gain effective leverage against its rivals by exploiting its internal resources that happen to be: brand collateral, quality products and exemplary service. They have evolved in to the best fast food centre through customer satisfaction and reaching their changing tastes. The usage of technology and uniformity in its products has been the sign of its fast food around the world. McDonald's strategy to personalize its products as per the changing requirements of people has been its major strategic gain (McDonalds). Streamlined procedures and uniformity in its development processes has significantly lowered the entire cost leading to higher profitability for McDonalds even during recessive times.

Samsung is another highly successful firm that depends on productive flow of quality goods to permeate new market and keep maintaining its market position. Currently Samsung is market leader in neuro-scientific semiconductors, gadgets and telecommunication accessories (Siegel and Chang, 2009). It really is known for its quality innovative products that happen to be also affordable. Its success is founded on its swiftness based progressive products. The business focused on its strategy of developing research and engineering skills such that it could improve and improvise innovatively on the electrical power and digital products of Sony, Phillips, Matsushita and Nokia. Samsung's potential to launch its products with added features with a great speed, was a huge success with the target population. Samsung got geared its groups of experts to keep a tight watch on the people's pulse and was therefore in a position to anticipate their demands and used to create new products and features which were envied by its rivals.


One can thus conclude that managerial command becomes important concern in making decisions about the improvement potential in the many business procedures, especially productivity stream that can significantly impact sales and overall earnings. The quickly changing dynamics of the business environment make it necessary for the firms to change new operational reasoning and circulation strategy that rely on quick evaluation for improved productivity. Indeed, earnings is the compensation of the businessperson and main purpose of the business. Thus, constant improvement in output circulation for quality products that contributes to improves profits becomes vital factor in the modern business.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)