Product life cycle with – with examples
The concept of Product Life Cycle (PLC) highlights that sooner or Later all products die and that if an entrepreneur wishes to sustain its revenues, he must replace the declining products with the new ones.
The advantages of forecasting the life cycle of a product to a firm are as follows: 1. When the PLC is predictable, the entrepreneur must be cautious in taking advance steps before the decline stage, by adopting product modification, pricing strategies, distinctive style, quality change, etc. 2. The firm can prepare an effective product plan by knowing the PLC of a product. 3. The entrepreneur can find new uses of the product for the expansion of market during growth stage and for extending the maturity stage. 4. The entrepreneur can adopt latest technological changes to improve the product Quality features and design
The product moves through the four stages namely, introduction, growth, maturity and decline. As the product moves through different stages of its life cycle, sales volume and profitability change from stage to stage
1. CRT Televisions;
The innovations in the field of technology has made way new models of Televisions in the market like the LED /LCD and it had shown the exit door for the CRT model TV With LCD/LED TV sales in India gaining momentum quickly, 2010 was the last year that Cathode Ray Tubes (CRTs) can lay claim as the leading television display type in the country on a revenue basis, according to a research report
The above chart shows the sales of CRT vs LED in the recent years which is quite evident that the CRT model TV is growing through its decline
New CRT sets are no longer sold in the United States but are still being manufactured mostly for the Asian market.
"The CRT demand comes mostly from the world’s developing nations, where inexpensive TV sets using CRTs are one of the first luxury items people tend to buy as soon as they have a little bit of...
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