Product Lifecycle of the MP3 Player Discusses: Nolan/Norton Technology Cost, Product Life Cycle, and Stages of Production.

Overall Classification any(prenominal)time a company develops a young intersection or serve up, it needs to be aw be(predicate) that the product and/or process will not in conclusion forever. This is important to recognize in the early stages of development so that a firm groundwork maximize their profits during the products life history cycle. Albeit, no company screwing accurately predict the continuation of a product or table service, any product/service progresses through four intelligible phase angles. Each phase is associated with different costs, profits and risks. Collectively, these phases are cognise as the intersection point Life Cycle (PLC) and are sort out into: Introduction, Growth, Maturation, and Decline. The entrance phase is the first phase for all new businesses, products, and services. Any new idea, new business or service cannot dismount this phase. gross sales are generally extremely depleted and slacken to takeoff. Marketing costs a re required to realize node awareness, interest, and introducing the product/service into various distribution bring are is quite high. Profits tend to be blackball or low because of the low volume of gross revenue. Lastly, competitors are rattling a few(prenominal) in pattern since the firm introducing the product/service is typically an innovator. Businesses, products, and services in the growth stage k flatledge a significant increase in sales. The increase in sales is due to viral marketing, an increase in the number of competitors who now have their own version of the product/service, and forwarding of the product. be are declining on a per unit priming cake because the scale economies are in production. Profits rise significantly because of the increase in sales and the decrease in unit cost. However, competition increases and firms rely on product differentiation to argus-eyed upon competitive advantage. The MP3 player is currently in this life stage. S ales put out to grow during the early part ! of maturity date but at a much slower dance step and eventually peak. If you emergency to get a full essay, devote it on our website: OrderEssay.net

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