Product Life Cycle of Compact Disc

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  • Topic: Compact Disc, Sony, Philips
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  • Published : February 18, 2012
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Product Life Cycle of Compact Disc

Compact disc technology is one of the fastest growing industries of all time. Compact discs became popular in the early 80’s due to its ability to offer increased audio performance over traditional magnetic recording media. In 1983 over 30,000 players and 800,000 discs were sold. By 1990, this number had grown to a staggering 9.2 million players in the U. S., and close to 1 billion discs worldwide. In 2004, the annual worldwide sales of CD-Audio, CD-ROM, and CD-R reached about 30 billion. Today, Sony DADC is the leader in the industry and produces about 410 CDs per day and ships up to 6.4 million discs daily. Compact disks are majority used for storing music.

Life Cycle Stage
1. Market Introduction Stage (From 1969 to mid-1980s)
Research into the video disc began as far back as 1969. In 1970 Philips began work on what was called the ALP (audio long play) - an audio disc system to rival vinyl records, but using laser technology. The compact disc project was launched following Philips' failure with its video disc technology in 1978. The first compact disc was produced in 1982 in a factory in Germany after years of development by Philips and Sony. The first Audio CDs and audio CD players have then been commercially available since October 1982. [pic]

Standard CDs can hold up to 80 minutes of uncompressed audio or 700 MB (700 × 220 bytes) of data. CD has obvious advantage over its competitor, Compact Cassette (CC), as CC can only hold up to 30 – 45 minutes of audio with unremarkable quality. [pic]

As CD players were not popular in the early stage, the sales volume in early 1980s had been slow and customers have to be prompted to try the product.

2. Growth Stage (From mid-1980s to mid-1990s)
In 1984, CD players became commercially available to be installed in automobiles. This allowed users to listen to CDs while driving. CD drives for computers, referred to as CD-ROMs, were first produced in 1985....
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