What is a drawback of the product life cycle theory?
The major drawback of the product life cycle is that one can never predict the time that a product will take in each stage of the cycle. Sometimes it becomes difficult to distinguish one stage from another because very few people are keen to pay details of the flow of goods and services in the market.
What are the problems of product life cycle?
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 are important trade implications of the product cycle theory?
Product cycle theory shows how specific products were first produced and exported from one country but through product and competitive evolution shifted their location of production and export to other countries over time.
Are there any disadvantages to following a life cycle approach to project management?
Disadvantages:
- The works end only after the completion of the last stage.
- High risks and uncertainty.
- Not the best choice for complex projects.
- Not ideal for object-oriented projects.
- Out of place for long-term projects.
- The progress is hard to measure on every stage while it is still in progress.
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 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 _________________.
What is decline in product life cycle?
Decline Stage: The decline stage of the product life cycle is the terminal stage where sales drop and production is ultimately halted. Profitability will fall, eventually to the point where it is no longer profitable to produce, and production will stop.
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 is the impact of product life cycle in international trade?
In this level of the product lifecycle, the level of product demand and sales volumes increase slowly. Duplicate products are reported in foreign markets marking a decline in export sales. In order to maintain market share and accompany sales, the original exporter reduces prices.
Is the product life cycle still valid 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 are the limitations of life cycle models?
More expensive than the traditional model needs more resources than the waterfall model. Constant management requires with strike surveillance. Issues can occur during the designing stage as all the aspects are not on paper after the short planning stage.
How does the product life cycle theory work?
The theory suggests that early in a product’s life-cycle all the parts and labor associated with that product come from the area in which it was invented. After the product becomes adopted and used in the world markets, production gradually moves away from the point of origin.
How is the life cycle of a product dependent?
Sixth, the life cycle of a product is dependent on sales to consumers. All consumers do not buy in the introductory stage. Some people buy early, others buy after their friends have bought. For any product to be successful it must be bought by early adopters.
Why is a product life cycle graph useless?
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. Such fluctuations can arise due to production issues, seasonal sales of the product or due to any other reason.
When did Raymond Vernon develop the product life cycle theory?
Raymond Vernon, a Harvard Business School professor, developed the product life cycle theory in the 1960s. Products come into the market and steadily depart all over again. According to Raymond Vernon, each manufactured goods has a definite life cycle that begins with its expansion and ends with its decline.