Question

in what stage of the product life cycle are laptop computers? what does figure 14.5 indicate firms should do at that stage? What will the next stege be? as a CEO what might you do at the stage to optimize profits?

Profits Losses may occur Very high profits Declining profits Life Cycle Stage Introduction Growth Maturity Sales Low sales Rapidly rising sales Maturity Competitors Few Growing number Stable number, then declining Declining number Falling sales Decline Profits may fall to become losses

Answer 1

Laptop computers are in Maturity phase. The firms should intensify advertising and marketing efforts. They must also innovate and try to venture into new areas of improvement for their product, new features should be added. The next stage will be Decline phase and hence the profits will dip. At this stage, the companies must innovate and invest on reasearch of new products.