Product Life-Cycle: The Role Of Product Development In Market Industry

The product development is a very useful concept to be understood in market industry. It helps to monitor the market trajectories (Day, 1981). It is unpredictable as to how long a product lasts in market and therefore, a product development is needed to measure the industry behavior with respect to time (Smith, 2012) and therefore, it is known as product life-cycle. A product life-cycle has been applied in market world for more than a half century (Dean, 1950). Specifically, product life-cycle is defined as an evolution of a product by measuring it by its sells over time (Ӧstlin, Sundin & Björkman, 2009). It refers to entire product categories rather than individual products, firms, or brands within the product category. Based on the product

During mature phase the nature of competition has been established and a company often comes up with various strategies which involves product differentiation or niche marketing (Porter, 1980). Unlike growth phase, mature phase is more predictable in term of its industry dynamics. As a result, the growth of the market is more limited as the product perforation has reached its saturation (Aitken, Childerhouse & Towill, 2003). Besides, the price setting improves due to the better understanding of the market. Smith (2012) states that customer interest is more on the price-setting issues. This is a challenge for competitors for they need to provide relevant price for both consumer and business market in order to continue gain profit. A relevant alteration of the price structures is paramount as it to remain resilient and competitive in a turbulent market. The company or organization must always up to date about the price setting in the market. An example of the price structure change is the airline market. Malaysian Airlines introduced management into somewhat mature airlines and eventually ceased in the 2015. Its ability to adopt the yield management price structure enabled it to solidify its position as an airline industry leader until new airlines is launched that promote much cheaper price. The dramatic change is price order is vital and needed to ensure that the Malaysian Airlines stay relevant and

It is unavoidable new products are introduced from time to time. The product which has stayed on business market may become outdated or obsolete (Smith, 2012). In order to recover from further plummeting both in term of customers and business profits, Nagle and Holden (2002) mention that industries tend to apply three strategies which are Harvest, Consolidate and Focus. When doing the Harvest strategy, a company exits the market slowly at the same time withdrawing the remaining profits from customers. This is the period when the company has stopped its investment in any plan or improvement process of the product. By doing so, it gives the company to support the industry through an appropriate merger. The next strategy is called the Consolidate strategy. The Consolidate strategy requires the company to seek of becoming the last one serving the industry (Nagle & Holden, 2002). Nagle and Holden (2002) point out that the strategy often rely on establishing or maintaining the low-cost position through the economies of scale or technological improvements.( In other words, it focuses on retaining the product in the market by using a low cost budget which agreed upon. -Is this correct? My assumption). The final strategy is known as the Focus strategy. Focus strategy is supported by companies which are able to accommodate the needs of a specific market niche that is anticipated to last for a period of time (Smith, 2002).