MGT211 - Introduction To Business GDB NO.2 Solution and Discussion Fall 2013 Due Date: February 16, 2014.

Introduction to business (mgt211)

Dear Students!
This is to inform that Graded Discussion Board (GDB) No. 02 will be opened on February 12, 2014 for discussion and last date for posting your discussion will be February 16, 2014.

Topic/Area for Discussion
 “PRODUCT LIFE CYCLE”

This Graded Discussion Board will cover first 37 lessons.

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. 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.
Product Life Cycle Stages Explained
The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.
Introduction stage– This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector.
Growth stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.
Maturity stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.
Decline stage – Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper marketS