15.1 Organisational survival and life cycle issues

?  The product life cycle describes the financial and marketing life of a product from introduction, through growth to maturity and decline.

?  The life cycle can be determined by technology or customer demand.

?  The strategies which are appropriate for a product will vary throughout its life cycle.

15.1.1 Stages of the life cycle

?  The product life cycle model suggests that a product goes through stages – launch/introduction, growth, maturity and decline – each of which has different financial and operating characteristics.

?  The product life cycle:

①   Begins with the initial product specification

②   Ends with the withdrawal from the market of both the product and its support