What are the possible weaknesses of using a model like the product life cycle?
Disadvantages of the Product Life Cycle
- Varying Market Conditions: The market conditions vary from place to place, and the same product life cycle may not be suitable for every market.
- Inapplicable to Every Product: Some services like mobile network and computer software, keep on frequently updating from time to time.
What is the most challenging stage of the product life cycle?
Maturity Stage The third stage of the product life cycle can be a challenging time for manufacturers as they look to maintain their market share while growth slows down.
Why are companies reluctant to use the product life cycle concept?
20 Companies have been reluctant to use product life cycle management concepts for which of the following reasons? the emphasis in PLC management is on the long run rather than the short run payback. the benefits of PLC management are not equally distributed across the organization’s functional groups.
What are the major challenges that companies face in the introduction stage of the product life cycle?
Startup stage During this stage of the business life cycle, challenges include funding, money management, and market presence. You need cash to launch your business, attract new customers, and generate revenue. Money often determines which strategies you can execute in the early stages of your business.
What are the limitations of the product life cycle graph?
Fluctuations in sales data – One major problem in the Product life cycle is that the graph is completely dependent on sales data. Thus if there are fluctuations in the sales data, then the graph is useless and cannot be used to predict precisely the movement of products or the overall product rise and decline.
What is the criticism of the product life cycle concept?
Not all new products will follow the standard product life cycle curve/pattern. Most marketing textbooks represent the same S shape/roller coaster shape PLC curve. This creates a false sense of security about the predictability of future sales.
What is one of the challenges presented by product life cycle for a product?
ANSWER: (1) Product life cycle PLC in marketing represents two main challenges. 1st an organization must be good at developing new product to replace old ones and 2nd it must be good at _________________.
How can we criticize of the product life cycle concept?
What happens if the product life cycle is not monitored?
If the product life cycle is not accurately monitored, the inventory may result in having an excess of that product for a much longer time than is needed. This can go the other way as well, with there being an inadequate supply of the product in the inventory, despite the product growing in popularity.
Is the product life cycle still relevant today?
The life cycle of IT products is getting shorter and shorter. A piece of hardware that had a useful life of 10 years in the past, is now outdated in less than 5 years. Some products can be obsolete after just one year! So businesses must manage product life cycles more effectively than ever before.
What is the main cause for the failure of a new product?
According to Robert Cooper [1], the major causes for new product failure are: inadequate market analysis, product defects, lack of effective marketing effort, higher costs than anticipated and competitive reaction.
Are there any products which do not have a product lifecycle?
Products That Defy the Theory American Express, Budweiser, Camel, Coca-Cola, Western Union and Wells-Fargo thrive in their respective categories after years on the market. Even brands that have died can be reincarnated, though perhaps in more limited distribution.
What are the disadvantages of product life cycle?
Such products will demand investments but the returns will be very poor. Fluctuations in sales data – One major problem in the Product life cycle is that the graph is completely dependent on sales data.
Is product life cycle applicable to brands or services?
Not applicable to brands or services – Product life cycle is generally applicable to products only and not applicable to brands or services. For example – Microsoft has so many products which have come and gone but this does not mean that the brand Microsoft is in Maturity stage or decline stage.
Why is the life span of a product unpredictable?
Change: The unpredictability of a products life span comes from the fact that all the factors that influence the product life cycle are constantly changing.
Is the product life cycle curve still relevant?
While the Product Life Cycle Curve needs to be applied with a certain amount of care, and manufacturers are unlikely to rely solely on it’s simple illustration to predict their sales and profits, it is still a useful tool.