Product Life Cycle (With Real World Examples) | Strategic Management | From A Business Professor

Summary

This video from 'Business School 101' explores the product life cycle, a critical concept for business professionals. It outlines the four stages: Introduction, Growth, Maturity, and Decline, detailing strategies for each phase. Examples like typewriters, VCRs, electric vehicles, and AI products illustrate these stages. The video also offers strategies to extend the maturity phase, emphasizing the importance of industry evolution, consumer tracking, innovative technology, and consumer perception in sustaining product success.

Takeaways

• 🔍 The product life cycle is a critical concept in business, outlining the stages a product goes through from introduction to removal from the market.
• 📈 The four main stages of the product life cycle are Introduction, Growth, Maturity, and Decline, each with distinct characteristics and strategies.
• 🚀 During the Introduction stage, products face slow sales as they create demand and compete with established products in the market.
• 🌱 The Growth stage sees an increase in production and sales as the product becomes more widely available and faces competition from new entrants.
• 🏆 In the Maturity stage, sales growth slows as the market becomes saturated, and maintaining market share becomes a focus through branding and product differentiation.
• 📉 The Decline stage is marked by a decrease in sales due to increased competition or the emergence of innovative alternatives that make the product obsolete.
• 💡 Examples of products in various stages include typewriters in decline, desktop computers and smartphones in growth or maturity, and electric vehicles still growing.
• 🔄 To maintain the Maturity stage, businesses should understand industry evolution, track consumer changes, use innovative technology, and consider consumer perceptions.
• 📊 Adapting to industry changes and consumer needs is crucial for prolonging the life cycle, as it allows businesses to stay relevant and competitive.
• 💼 The script suggests that even though all products have a life cycle, successful strategies can extend the Maturity stage, delaying the eventual decline.

Q & A

What is the product life cycle?

The product life cycle refers to the length of time a product is introduced to consumers into the market until it's removed from the shelves.

How many stages are included in the product life cycle?

The product life cycle is typically divided into four major stages: introduction, growth, maturity, and decline.

What happens during the introduction stage of a product life cycle?

During the introduction stage, a new product is produced and a market strategy is developed to create consumer awareness. Sales are typically slow as demand needs to be established.

What are the key characteristics of the growth stage in a product's life cycle?

In the growth stage, demand for the product increases, leading to higher production and wider availability. Sales growth becomes more significant, and competition may emerge.

Why does the sales growth slow down during the maturity stage of a product life cycle?

Sales growth slows down during the maturity stage because the market becomes largely saturated, and the product is well established with most consumers having already purchased it.

How does the decline stage of a product life cycle occur?

The decline stage occurs due to increased competition, innovations that make the existing product obsolete, or a shift in consumer preferences towards new alternatives.

What are some real-world examples of products in different stages of the product life cycle?

Examples include typewriters in the decline stage, desktop computers and smartphones in the growth or maturity stages, and electric vehicles still in the growth stage.

How can a company maintain the mature stage of a product life cycle for a longer period?

A company can maintain the mature stage by understanding industry evolution, tracking consumer changes, using innovative technology, and considering consumer perceptions.

Why is it important for a business to understand the evolution in its industry?

Understanding industry evolution helps a business to reflect those changes, maximize profits, and stay current, which is crucial for adapting to technological advancements and generational shifts.

How can a company adapt to changing consumer needs and preferences?

A company can adapt by regularly refining its approach to meet the expectations of each new generation, such as altering product features or marketing strategies to align with consumer interests.

What role does innovative technology play in prolonging the life cycle of a product?

Innovative technology can alter business operations and help firms remain competitive by differentiating themselves from competitors, which can lead to increased sales and stronger consumer connections.

Why is rebranding important for a company as it navigates through the product life cycle stages?

Rebranding helps a company maintain a positive public standing by aligning its marketing strategies with the changing interests and values of its target audience, such as shifting focus to environmental sustainability.