Examine each stage of the product life cycle. Which stage do you think is most important? Which stage has the highest risk? Which stage seems to hold the greatest profit potential? Which stage would seem to need the greatest amount of ''hands-on'' management? 

 

Looking into the different products available in the market one can conclude that they all follow a certain pattern. When a product first lands in to the market, it starts off in the development stage where the company tries to raise as much awareness about it as possible. If all goes well it enters the growth stage where demand increases significantly and the company may start making profits. Next the product enters the maturity phase where it enjoys a fair share in the market making profits and fighting off competition. The final stage is the decline phase where the products demand in the market begins to disappear. This usually happens as a result of a new better product in the market.

The stage that is most risky and where most companies fail is the development phase. This phase presents a challenge since the product is unknown and has little to no demand at all in the market. Companies must focus on raising awareness through marketing campaigns which are quite costly. At the same time, the product is not selling as much, so the company's operation result to losses. Consistent losses can break the spirit of the entrepreneur or even leave the company bankrupt. For this reason most companies do not make it past this stage. The phase where a product is most profitable is the maturity stage. This is where the company has established its share of the market and there is a lot of peer to peer advertising. Here the company also benefits from consumer perception allowing it to manipulate prices to make profits and fight competition.

The growth stage is when the product needs an all hands on deck approach. It is in this stage that the company finds that they have to produce more to meet rising demand. At the same time they cannot stop aggressive marketing as the product' s position is the market is still unstable. As such everyone in the organization should be at their best to fulfill their duties and attract customers.

Step-by-step explanation

The product life cycle is worth taking time to study as an entrepreneur. Knowing which phase your product is in will give you an advantage as you'll know what to expect. For instance understanding that the first phase losses are normal may save one allot of stress. Also, knowing that the growth stage requires more efforts can stimulate the entrepreneur make it through.