Product Life Cycle
- Every product has a life cycle. During it, sales do not stay constant as there will be variations in levels of demand. Also, the amount of competition in markets varies, which will also affect it.
There are 5 stages of the product life cycle, these are:
This is what it usually looks like:
- The product is new to the market with a few potential customers. The prices can be high to bring in higher profit margins quickly, however sales may be restricted to early adopters. The profits are low because development costs need to be repaid before they begin to make profit.
- Product has become more…