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Product life Cycle
Product life cycle as defined is the stages through which a product passes before being withdrawn by the company. These stages are hypothetical and used from an analysis point of view. There are no laws that define the boundary of each stage and each stage overlaps the other. It is not necessary for the product to follow this pattern and the length of time each product spends in each stage varies. The stages are Introduction, Growth, Maturity, Decline and Withdrawal.
I am going to explain each stage with the help of the I-pod made by Apple and give certain strategies they have followed in respect to the flow of the product through various stages in the Product Life Cycle chart.
Introduction
In this stage the product is launched and making profit is not the real motive. It is more to do with awareness. The apple I-pod was launched in 2001 and gave Apple Inc. an edge over all its competitors. Apple was able to charge a premium price and make huge profits with this product. Since this product had no direct competitors it was sought after by all age groups in the society.
Growth
This is the stage where competitors are attracted to the market and the market share of the companies stabilise. The Apple I-pod saw competition creep in and make a similar product charging a lower price to attract the market demand. The main competition came from creative who launched ZEN, their version of the I-pod. Although they were not able to topple Apple from the top they did eat into the market share of the I-pod. This phase for the I-pod also saw a growth in its accessory brand which became a must have with the Apple I-pod.
Maturity
Here th ...