Product Life Cycle
The product life cycle is the natural progression of a product from its inception to its eventual demise. The cycle is broken down into four distinct stages:
1. Introduction: This is the stage where a new product is introduced into the market. At this point, there is typically little to no competition and demand is low as consumers are unaware of the product’s existence.
2. Growth: As awareness of the product increases, so does demand. This stage is characterized by rapid sales growth and increased profits.
3. Maturity: Eventually, all products reach a saturation point where growth slows and competition increases. Sales plateau and begin to decline as newer, more innovative products enter the market.
4. Decline: This is the final stage of the product life cycle during which sales rapidly decrease as consumers flock to newer, more appealing products. Profits also dwindle during this phase until eventually, the product is discontinued entirely.
