Introduction of business life cycle
introduction stage
growth stage
maturity stage
decline stage
it also dicuss about decline of business in market
factors influencing for it.
3. INTRODUCTION
A life cycle is a course of events that brings a new
product into existence and follows its growth into
a mature product and eventual critical mass and
decline. The most common steps in the life cycle
of a product include product development, market
introduction, growth, maturity, and
decline/stability.
4.
5. After testing, a product enters the Introduction stage and the product will be available in
the market.
Slow Sales
Low Profits or Losses
High Cost due to high Promotional Expenses
Generally High Price
Less Competition
Build selective distribution
Create product awareness and trial
1-INTRODUCTION STAGE
6. More Customers will start buying the product. This is because customers of Introduction
stage are buying again or have recommended to their circles.
Rapidly rising sales
Expansion in the scale of production
Rising Profits
Lower unit cost
Competition
Stable or slightly reduced price
2- GROWTH
7. In this stage, the demand for the product reaches a saturation point and Competition
becomes severe.
High sales
Build more extensive distribution
Average cost per consumer decreases
Maximum profit
Low competition
Diversify brand differences and benefits
3- MATURITY
8. In this stage, there is no growth of sales. Competition becomes tough. The firm uses
different strategies.
Prices tend to fall
Profits starts declining
Stiff Competition
Product supply may exceed demand
Product modification and improvement
SATURATION
9. In this stage Sales began to fall and there may be little or no profit. Production cost and
inventory cost become larger. This stage will lead to gradual phasing out of product.
Rapid fall in sales
Fall in prices
No promotional expense
Reducing distribution network to the minimum
Product technology becomes obsolete
4- DECLINE
10. Not all the products follow this life cycle-
Fads
Styles
fashions
BUSINESS WHICH DOSEN’T FOLLOW BLC-