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All living things go through a cycle of birth, growth, maturity, and death.
The life-cycle concept is an appropriate description of what happens to products, industries, and businesses over time. When applied to this context, the life cycle contains four stages: This concept is much more than an interesting analogy of business and biology.
The life-cycle concept was adopted from biology for use as a strategic planning tool for products, industries, and businesses. In its classic form, it is best applied to products and industries, though it can also be applied to individual businesses.
A product is not an individual item but a group of similar products. Industry is a much broader classification than product; an industry consists of many similar groups of products.
The product groups of mid-size sedan, pickup truck, and sport-utility vehicle all belong to the automobile industry.
A business is, of course, a firm operating within one or more industries, such as Ford or General Motors in the automobile industry. Generally, industries have longer life cycles than products.
For example, the large family-sedan appears to be well into the decline stage. The automobile industry, on the other hand, has lasted more than one hundred years and shows no signs of declining even with concerns about the declining world supply of oil; with alternative-fuel research getting started in earnest, the automobile industry will likely outlast even the oil industry upon which it is currently based.
Businesses may have an even longer life cycle than its original industry if decline is turned into transformation. For example, NCR began as a company producing cash registers, and while that industry still exists, NCR has become a leading technology company within the newer IT industry.
Similarly, oil companies such as BP are moving heavily into alternative energy solutions in order to outlast the decline of the oil industry. The life-cycle concept also describes individual brand products, such as the Ford Taurus.
However, individual products in a group of products usually have much shorter life cycles, and they do not always follow the classic shape of the product life cycle.
They may be introduced and die, and then be reintroduced again at a latter point. For example, the Chevrolet Nova has had more than one life cycle.
Consequently, products are defined as groups of similar products, and industries are defined as a collection of comparable product groups.
The discussion that follows is applicable to industries, products, and individual businesses. The terms product life cycle, industry life cycle, and business life cycle refer to the four stages of introduction, growth, maturity, and decline.
To simplify the discussion, the focus will be on the product life cycle with indication as to where the industry and business life cycles differ in important ways. The reason is that society accepts products at different rates, but all go through similar stages of societal acceptance.
This acceptance of innovations by societies is called the diffusion of innovations. As society begins to adopt and accept an innovation, the new product grows, eventually reaching maturity. When there is a better alternative to the product or when public preference changes, the product will enter a decline, possibly ending with its death.
The diffusion-of-innovations concept categorizes society by the speed with which the individual members adopt a new product. It classifies people into the five categories of innovators, early adopters, early majority, late majority, and laggards.
The first people in a society to adopt a new product are the innovators. These people are risk takers and may be looking for new products to try.Spark and glow plugs. The quality and design of spark plugs determines the performance of the engine and its reliability.
A correctly set spark plug positively influences the combustion process of a petrol engine and thereby the volume of waste products in emissions. The product life cycle stages are 4 clearly defined phases, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.
Stages include introduction, growth, maturity and decline and are explained in detail here. View and Download Skoda Superb owner's manual online.
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