The strategic planning analysis is not merely used to design overall organizational goals rather it can be applied using other techniques also, for instance, the BCG matrix and the product life cycle. The product life cycle is again divided into four stages. Each of these four stages explains the product performance in terms of cost, expenses, profits, the potential of acceptability in the market and suggest the possible best strategy to be used to make goals achieved by the organization. strategies of life cycle are
Introduction: At this stage, the product is on the initial stage and requires investment, research, and development, profits are negative and sales are negligible.
Growth: This stage of the product life cycle requires higher amounts of investments since the product is being accepted, sales are increasing, profits are increasing, therefore, the firms tend to invest more. This is often called the growth stage.
Maturity: This stage of the product life cycle reaches to its peak where the profits are at a maximum ebb, the sales are at the highest ebb, and the further growth in the product is not possible.
Decline: This stage comes after the maturity stage, actually what happens, there is always a breaking point between the commencement of the decline stage and end of the growth stage
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Stages, strategies of CISCO’s Flip Camera and Electric Jug:
If we look at CISCO’s Flip Camera, it was really a new and innovative product idea with greater acceptability in the market. The sales reports of the company were very high with a higher tendency of the people to accept. However, with the passage of time, the acceptance rate of the CISCO’s most popular brand has gone down. This is pity to speak but true that CISCO even can’t sales the brand. The analysis of the CISCO’s Flip camera reveals that the technology-based products have a very shorter span of time as the change in the technology and the features with generic manufacturers are increasing.
During the introduction phase of the CISCO’s flip camera, the product required an initial investment of research and development, however, the acceptance rate in the market was very high in less than a year. The company reported business of $590 million, however, within a couple of months after the year, the product was not even on the stage of the resale from the product line.
Strategies for CISOCO’s Flip Camera:
During the initial stage of the introduction, it was appropriate by the company to invest the cost of research and development on the product. After the product was on the growth stage, the company should have followed the strategies of adding new features and making it available at the possible lowest price to increase the market share. During the stage of maturity, it was appropriate to get maximum profit from the higher market share. Finally, at the time of decline, the company should have closed the product by selling it to the others when the level of competition is high and more generic manufacturers were entering the market.
Strategies for Electric Jug:
The application of the four stages of the product life cycle on the electric jug seems to be similar to that of the Flip camera. This is an established fact that the product life cycle of the technological-based products and or services are very short due to the generic manufacturers, innovation and access of knowledge to develop the products. The electric jug performs the function that a normal may not. For instance, provision of hot, cool and mineral water, however, the acceptance rate is quite high in the business use as regards to the domestic use, the families tend to use less due to its consumption of electricity and maintaining it in a certain protected environment. The electric jugs at present are very popular among the business users as they are serving the needs and are sources of cost-cutting. The electric jugs at present are right on the maturity stage since generic manufacturers are entering the market and sharing market share of the companies. The companies may use the strategy of getting the maximum profit at this stage by increasing the market supply at possible lowest rates to be competitive. However, this is not limited to the increase of the supply, the features added for domestic and multiple uses can also be a differentiation strategy to increase the market share.
Introduction: At this stage, the product is on the initial stage and requires investment, research, and development, profits are negative and sales are negligible.
Growth: This stage of the product life cycle requires higher amounts of investments since the product is being accepted, sales are increasing, profits are increasing, therefore, the firms tend to invest more. This is often called the growth stage.
Maturity: This stage of the product life cycle reaches to its peak where the profits are at a maximum ebb, the sales are at the highest ebb, and the further growth in the product is not possible.
Decline: This stage comes after the maturity stage, actually what happens, there is always a breaking point between the commencement of the decline stage and end of the growth stage
.
Stages, strategies of CISCO’s Flip Camera and Electric Jug:
If we look at CISCO’s Flip Camera, it was really a new and innovative product idea with greater acceptability in the market. The sales reports of the company were very high with a higher tendency of the people to accept. However, with the passage of time, the acceptance rate of the CISCO’s most popular brand has gone down. This is pity to speak but true that CISCO even can’t sales the brand. The analysis of the CISCO’s Flip camera reveals that the technology-based products have a very shorter span of time as the change in the technology and the features with generic manufacturers are increasing.
During the introduction phase of the CISCO’s flip camera, the product required an initial investment of research and development, however, the acceptance rate in the market was very high in less than a year. The company reported business of $590 million, however, within a couple of months after the year, the product was not even on the stage of the resale from the product line.
Strategies for CISOCO’s Flip Camera:
During the initial stage of the introduction, it was appropriate by the company to invest the cost of research and development on the product. After the product was on the growth stage, the company should have followed the strategies of adding new features and making it available at the possible lowest price to increase the market share. During the stage of maturity, it was appropriate to get maximum profit from the higher market share. Finally, at the time of decline, the company should have closed the product by selling it to the others when the level of competition is high and more generic manufacturers were entering the market.
Strategies for Electric Jug:
The application of the four stages of the product life cycle on the electric jug seems to be similar to that of the Flip camera. This is an established fact that the product life cycle of the technological-based products and or services are very short due to the generic manufacturers, innovation and access of knowledge to develop the products. The electric jug performs the function that a normal may not. For instance, provision of hot, cool and mineral water, however, the acceptance rate is quite high in the business use as regards to the domestic use, the families tend to use less due to its consumption of electricity and maintaining it in a certain protected environment. The electric jugs at present are very popular among the business users as they are serving the needs and are sources of cost-cutting. The electric jugs at present are right on the maturity stage since generic manufacturers are entering the market and sharing market share of the companies. The companies may use the strategy of getting the maximum profit at this stage by increasing the market supply at possible lowest rates to be competitive. However, this is not limited to the increase of the supply, the features added for domestic and multiple uses can also be a differentiation strategy to increase the market share.
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