Question

Based upon reading Strategic management of health care organization by Ginter submit a two paragraph essay that defines the product life cycle (PLC). As you explain the PLC be sure to include both its strengths and weaknessess. why is this useful when an organization consider adaptive strategies

Answer 1

Answer:

Product life cycle manages four phase journey of an item or product as for sales revenue / profit and promotional method. It incorporates following phases of Product life cycle.

Introduction phase:

In this phase is introduced in the market and promotional method is informative. Less outlets offer the item.Sales revenue is positive yet profit is negative.

Growth phase:

Right now, demand of item is high. In this manner, high development or growth in sales revenue happens at quicker pace. It makes positive profit however cost part is normal. Promotional technique is likewise brand focused.

Maturity phase:

In this phase, share gained by the item is combined or consolidated. High income is earned with moderate growth yet at generally low cost. There is a positive profit at this phase.

Decline phase:

In this phase,Sales revenue descends and profit turns out to be low and will keep on declining for a longer period.

Consequently, Product life cycle shows strengths and weakness of every phase.

• In the introduction phase, it has the weakness that it incurs high cost .
• However ,The strength of growth phase is to boost the profit at quicker growth rate. It will make organization get greater market share.
• In maturity phase, there is strength in solidification of profit at low cost easily. In this manner, bottom line of the organization turns out to be high.
• In decline phase has the weakness the business sales descend and organization needs to think of new product to keep up high direction or trajectory of growth in revenue.

Product life cycle gives reasonable thought regarding the strategic way to deal with be taken to delay the various phases of Product life cycle so higher income requiring at low cost can be accomplished or achieved.

Adaptive strategy is utilized to indicate the item scope, market expansion and other reasonable strategy for additional progression in the market. To make adaptive strategies viable, Product life cycle tells about the phase of life in which an item is being sold. It helps adaptive strategies to alter the development or expansion plan as far as launch of new item, withdrawal of old item, increase in special promotional campaign or potentially change in other marketing methodologies.