Production Life Cycle

There are four stages in the production life cycle. The first is the introduction stage. This stag is the slow growth stage. The new product is introduced to the market and people are finally starting to realize its potential or failures. The length of time the introduction stage varies depending on the product. The acceptance and willingness to buy the product from the consumer is a huge factor in the success. Nearly 40% of all the new products in the introduction stage fail.


The next stage is the growth stage. This is where the product sales are increasing at a very fast pace. The product begins to expand throughout the country or even the world. Competitors start to appear during the growth stage. The initially high price of the new product may be reduced to meet the increasing competition.


The maturity stage is the third and longest stage in the product life cycle. The sales are peaking and the profit is narrowing. A good example of the maturity stage is the original iPhone. The iPhone has been modified to fit different markets and expand their expectations. They have produced the iPhone 3G, the iPhone 3GS, and now the new iPhone 4.


The decline stage occurs when the product is coming to the end of its life. The sales are decreasing and something needs to change. This is found with video stores, such as blockbuster. Also, the attendance to theaters is not found as highly with the new sites to watch movies, download movies, and Netflix has taken over many of the other product lines because of the flexibility.