Business product life cycle

  • Created by: lee42
  • Created on: 08-03-19 12:02

Product life cycle

  • Five stages of product life cycle- 
  • developemnt- A complex stage. Also, it would involve a long lead time before sales achived
  • introduction- Involves a low level of sales, negative cash flow and low capacity utilisation
  • growth- fast growing sales, rise in capacity utilisation and economies of scale occurs
  • maturity- Prices/profit fall and cash flow should be strongly positive.
  • end/decline- falling sales and competitors leave the market

Uses of the product life cycle model

  • predict future trends and sales
  • Mrket positioning/training
  • Portfolio easeir…


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