Knowing the Life Span of a Product and How to Get It Done Right Time
Most products have a certain lifespan on the market. The product lifespan could be a short or long one depending on the product or service.
Most products have a certain lifespan on the market. The product lifespan could be a short or long one depending on the product or service. The life of a product is mainly influenced by the society and technology. So, it is very difficult to accurately predict the lifespan of a product. For this reason, many companies always try as much as possible utilize the chances to generate revenue during the growth and maturity stage of a product.
Normally, the lifespan of a product can be divided into four periods – Firstly, there is a period when the product is branded new and few people know of it, so it become difficult to sell. This period is also known as the pioneer stage. Next, people know of the product and would like to have one. At this time, the product might be expensive but it is what buying it. The third period is when the product is in the mainstream and a lot of people buy it and huge revenue can be generated during this period. The period is also known as the time of milking the cow or simply cash cow. Lastly, the period will come when many have tried it and it will gradually be fading out of the market.
In some cases product life span can turn out to be a cycle in the sense that a product that seems to be fading out of the market will find its pick up again and start to grow. But in a matter of time the product start declining again.
Over the years different model has been developed in order to be able to forecast the product life span. But how efficient are these model in accurately forecasting the product life span.
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Research question: How can companies really know the life span of their products and how should they act?