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Product Life Circle

In: Business and Management

Submitted By caothihong411
Words 1111
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Product Life Cycle
The product life cycle is defined as the period that starts with the initial product design (research and development) and ends with the withdrawal of the product from the marketplace. It is characterized by specific stages, including research, development, introduction, maturity, decline, and finally obsolescence as the product is removed from the market (discontinued). Each stage is often linked with changes in the flows of raw materials, parts and distribution to markets as production (input costs) is adjusted to face increasing competition.
The Product Life Cycle (PLC) is used to map the lifespan of a product. There are generally four stages in the life of a product. These four stages are the Introduction stage, the Growth stage, the Maturity stage and the Decline stage. The following graph illustrates the four stages of the PLC:

There is no set time period for the PLC and the length of each stage may vary. One product's entire life cycle could be over in a few months. Another product could last for years. Also, the Introduction stage may last much longer than the Growth stage and vice versa.
The Four Stages of the Product Life Cycle 1. Introduction: This stage mainly concerns the development of a new product, from the time is was initially conceptualized to the point it is introduced on the market. Introduction is a period of slow sales growth as the product is introduced in the market. Profits are non existent in this stage because of heavy expenspes of product introduction. The The great majority of ideas do not reach the promotion stage. The corporation having an innovative idea first will often have a period of monopoly until competitors start to copy and/or improve the product (unless a patent is involved as it is the case in industries such as pharmaceuticals). Generally, associated freight flows take place within…...

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