Product Lifecycle
Understanding how products evolve from introduction to decline
Your Progress
Section 1 of 5Understanding Product Lifecycle
Every product goes through predictable stages from launch to eventual decline. Understanding the product lifecycle helps you make better strategic decisions about resource allocation, marketing, pricing, and product development at each stage.
Why Lifecycle Matters
- •Strategic Planning: Different stages require different strategies and resource allocation
- •Investment Decisions: Knowing where your product is helps optimize R&D, marketing, and support spending
- •Competitive Response: Each stage has different competitive dynamics requiring adapted tactics
- •Portfolio Management: Balance products across lifecycle stages for sustainable growth
The Product Lifecycle Curve
Introduction
- • High costs
- • Low sales
- • Building awareness
- • Product refinement
Growth
- • Rising sales
- • Market expansion
- • Competition enters
- • Scaling operations
Maturity
- • Peak sales
- • Market saturation
- • Price competition
- • Efficiency focus
Decline
- • Falling sales
- • Market shrinking
- • Reduced investment
- • Exit decisions
Identify the Lifecycle Stage
Match each product scenario to its lifecycle stage:
iPhone (2007)
Apple launched the first iPhone with high development costs, limited market awareness, and focused on educating consumers about smartphones.
Netflix Streaming (2015)
Rapid subscriber growth, competitors like Hulu entering market, expanding content library, investing heavily in original content.
Coca-Cola
Global distribution, stable market share, focus on cost optimization, incremental product variations, defending market position.
DVD Players
Sales declining year over year, streaming replacing physical media, manufacturers exiting market, prices dropping.
Key Takeaways
- •All products move through Introduction, Growth, Maturity, and Decline stages
- •Each stage has distinct characteristics and requires different strategies
- •Understanding lifecycle stage guides resource allocation and decision-making
- •Portfolio balance across stages ensures sustainable business growth