Recognizing opportunities - Industry analysis - Products and technology

7 important questions on Recognizing opportunities - Industry analysis - Products and technology

What are the phases of the product life cycle?

  1. Introduction
  2. Growth
  3. Maturity
  4. Decline

What is the most important purpose of a new product or service?

To fulful customers needs in a way that is more effective than already available products or services do

What are the characteristics of the introduction phase of the PLC? (customer, demand, volumes, production efficiency, competition, profit)

  • Product not known
  • Demand has to be created
  • Sales volumes are limited
  • Production efficiency is low to no experience
  • No competitors
  • Negative profit (= high cost per unit + low volume)
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What are the characteristics of the growth phase of the PLC? (customer, demand, volumes, production efficiency, competition, profit)

  • Customers become aware of product
  • Demand increases
  • Volume increases
  • Production efficiency is higher (more experience = economies of scale) -> lower unit cost
  • Few competitiors -> decreased sale prices
  • Profit is relatively small

What are the characteristics of the maturity phase of the PLC? (customer, demand, volumes, competition, profit)

  • Customers are fully aware
  • Demand stable
  • Volume stable
  • Intense competition (lower prices and new featuresto differentiate)
  • Profit diminishes

What are the characteristics of the saturation and decline phase of the PLC? (volumes, production efficiency, profit, price per unit)

  • Volume declines
  • Increased efficiency needed
  • Profit and price declines
Reduction of cost price is neede

Why is the focus on cradle to cradle important regarding the PLC?

Cradle to cradle is the approach to use materials that can be regenerated or recycled. This gains importance due to government regulations an increasing customer focus on durability, sustianability and recycling

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