Question

"Azerbaijan invented Product X in 1970. In 1980, the country filed a case against Country X'for flooding the market with a copycat product." According to the product life cycle theory, which stage is the 'X'industry in? Explain your answer. (Word Limit: 70-80 words) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). TTT Arial : 3 (12pt) T.E E Pathp

Answer 1

There are five stages in a Product life cycle theory

1) Introduction stage : New product introduced in the market

2) Growth stage : Product start to capture the product by increasing consumer day by day.

3) Maturity stage : Most of the consumer in the market own the market. So the revenue will increase at a very slow phase.

4) Saturation Stage : There will be no growth or decline in the sales of product it reached the peak stage. Competitiors will start coming.

5) Decline stage : Product will loose its share in Market as competition will increase as the production process of product is known in the market. Sales will decline.

In the above scenario the product is in Declining stage as the number of competitiors in the market are more and the company is no longer having the impact it has in 1970 on the market. Only when the product reaches the peak stage it will have more competitors in the market as the producers will try to produce similar products at a very low cost than the original.