Product Life Cycle Assignment
Stage Product Product Description
Introduction Online streaming websites The emergence of online streaming websites is a new product in the market. The launch of the new product is expensive. Initially, the market for the streaming services is small and sales are low, but they will start increasing with time. On the other hand, the cost of production, testing, and marketing is critical to launch products, more so when in a competitive industry such as the online streaming services. The pricing of the services is low to penetrate the market. The pricing is low to ensure that the consumers understand the new product (Gmelin, & Seuring, 2014). However, some of the online streaming services might charge high prices to cover for the cost of operations and production. If the products are competitive, the pricing of the new product might vary based on the company’s cost of production.
Growth 3D TVs
The 3D TVs items are currently at the growth stage due to the strong growth in the profits and sales revenues. The manufacturers of the 3D TVs also benefits from economies of scale during the production process that increases the overall profit margins. At the growth stage, the 3D TVs are priced based on the prevailing market prices and competitive pricing compared to the rival firms. The company will observe the pricing of the rival firms are ensuring that the pricing is affordable for customers. The company might also consider lowering the prices than the rivals but ensure the price is above the unit cost of production. The product also requires the companies to invest in promotional campaigns that maximize their overall potential at this stage.
Maturity Blueray discs/DVR The DVRs are currently at maturity level of product life cycle. The manufacturers of the DVRs are mainly concerned with maintaining the market share they have created. The DVRs faces stiff competition from substitute products and the companies need to invest more on marketing campaigns. The manufacturers of the DVRs needs to consider some modifications and improvements to the production process to enhance competitive advantage. The businesses will continue using the competitive pricing strategy, but they would also use discount pricing approaches as the level of competition is high in the market.
Decline DVD The market of the DVD has started shrinking. The shrinkage of the market could because of the various reasons including the saturation of the markets or customers switching to substitute products. At the decline stage, it was possible for firms to earn profits through switching to less-expensive production approaches and cheaper products (Restuccia, Brentani, Legoux, & Ouellet, 2016). The pricing strategy of the company is low as the company considers stopping production. The company might try to recover the cost of production by selling just above the unit cost of production.
Decision Point Video cassette The manufacturers of video cassette have reached a decision to stop the production of video cassette as the technology of the product has been obsolete and no customers uses the products any more. At this stage, the products become rare to get in the market as manufacturers do not consider them commercially viable to produce. Consumers have turned to more advanced devices that offer better storage than the video cassettes.
Gmelin, H., & Seuring, S. (2014). Achieving sustainable new product development by integrating product life-cycle management capabilities. International Journal of Production Economics, 154, 166-177.
Restuccia, M., Brentani, U., Legoux, R., & Ouellet, J. F. (2016). Product Life‐Cycle Management and Distributor Contribution to New Product Development. Journal of Product Innovation Management, 33(1), 69-89.