Question About Life-Stage Cycle?

Question

Which product life-cycle stage, if any, is the most important? Which stage is the riskiest? Which stage appears to hold the greatest profit potential? Which stage needs the greatest amount of “hands on” management?

Answer 1

good questions-here are my opinions-Also consider the variables that exist based on the "product".

Development is the riskiest because it is the most expensive. millions of dollars can be and are lost on product development for failed products-some estimates state that only 2% of R&D products even go to market, and only half of those succeed-pretty lousy odds. I would also say that this is the most important phase, for the same reasons.

I'd say the greatest profit potential is in the mature stage-you can command the highest price(no need to discount and promote as in the growth stage), and have the highest number of customers.

hands-on mgmt is a tough one-paying attention to performance and market conditions are important throughout the PLC-dropping the ball at any stage is likely to impact profitability in some way..

hope this helps!