Product Life Cycle Essay

Resources have a funny way of disappearing when you most need them. If we are talking about human resources then you will find that your team members end up stretched and pulled all over the place once the work starts to pick up in earnest. In terms of other resources such as office equipment, it can be important to plan well ahead and order anything you are going to need a long time before you actually need it. 2. Project Plan Ignored – So, you go to the trouble of raring up an excellent project plan and then what happens?

In a lot of cases it gets ignored when the going gets tough. In some cases this might not be a conscious decision. It could be that with so much going on you feel as though you don’t have the time to update and amend the project plan. 3. Stakeholders Not Involved Enough – You might look upon the stakeholders as a necessary evil but without their involvement it is going to be a lot more difficult to get the project through to a successful conclusion. One of the first things you need to do when you get started is o make sure that the stakeholders buy into the project. . Not Keeping on Top of Risks and Issues – It is extremely unlikely that your project sails through from the initial planning stages to completion without any problems. This meaner that it is imperative that you keep on top of your risks and issues and don’t let them run out of control. 5. Scope Creep – Even if you are new to the world of project management you have probably been warned of the dangers of the infamous scope creep. This is where a project grows arms and legs and ends up becoming completely manageable II.

Product Life Cycle 1. Introduction The introduction stage is characterized by low growth rate of sales as the product is newly launched in the market. Monopoly can be created, depending upon the efficiency and need of the product to the customers. A firm usually incurs losses rather than profit. If the product is in the new product class, the users may not be aware of its true potential. In order to achieve that place in the market, extra information about the product should be transferred to consumers through various media.

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The stage has the following characteristics: A) Low competition, B) Firm mostly incurs losses and not profit. 2. Growth Growth comes with the acceptance of the innovation in the market and profit starts to flow. If the monopoly exists, companies can experiment with new ideas and innovation in order to maintain the sales growth. This stage is the best time to introduce new effective products in the market thus creating an image in the product class in the presence of its competitors who try to copy or improve the product and present It as a stoutest. 3. Maturity

In the maturity stage, the end of stage of the growth rate and sales slowdown as the product has already achieved acceptance in the market. New firms start experimenting in order to compete by innovating new models of the product. 4. Decline The decline stage is where most of the product class usually dies due to low growth rate in sales. A number of companies share the same market, making it difficult for all entrants to maintain sustainable sales levels. Ill. Definition of Terms Cost-plus pricing – is a pricing method used by companies to maximize their rate of turns.

Value-based pricing – or value optimized pricing, is a pricing strategy. It sets prices primarily, but not exclusively, on the value, perceived or estimated, to the customer rather than on the cost of the product or historical prices. Value-based pricing can be used as a meaner of improving profits through higher prices and stable volumes, or as an opportunity to increase market share with minimal price erosion or competitive response. Break even pricing – is the practice of setting a price point at which a business will ran zero profits on a sale.

The intention behind the use of break even pricing is to gain market share and drive competitors from the marketplace. Competition-based pricing – A pricing method in which a seller uses prices of competing products as a benchmark instead of considering own costs or the customer demand.

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