Product Life Cycle
Analyzing Industry maturity stages. Explanation of Product Life Cycle of Levitt, Fox, Wasson, Hofer, Anderson & Zeithaml, Hill & Jones. ('65)
The Product Life Cycle model can help to analyze maturity stages of products and industries.
The term was used for the first time by Theodore Levitt in 1965 in an Harvard
Business Review article: "Exploit the Product Life Cycle" (Vol 43, November-December
1965, pp 81-94). Any company is constantly seeking ways to grow future cash
flows by maximizing revenue from the sale of products and services. Cash Flow
allows a company to maintain its viability, invest in new product development
and improve its workforce. All this in an effort to acquire additional market
share and become a leader in its respective industry.
Also, the modern Product Life Cycle is becoming shorter and shorter. Many
products in mature industries are revitalized by product differentiation and
market segmentation. Organizations increasingly reassess product life cycle
costs and revenues, because the time available to sell a product and recover
the investment shrinks.
The stages in the Product Life Cycle
Several variations of the Industry Life Cycle model have been developed
to handle the development of the product, market, and/ or industry. Although
the models are similar, they differ as to the number and names of the stages.
Here is a list of some major models:
variations of the life cycle model
1973: Fox: precommercialization - introduction - growth - maturity - decline.
1984: Anderson & Zeithaml: introduction - growth - maturity - decline
1998: Hill and Jones: embryonic - growth - shakeout - maturity - decline
Compare with Product Life Cycle: Bass Diffusion Model | Stage-Gate | ADL Matrix | BCG Matrix | Relative Value of Growth | Positioning | GE Matrix | Innovation Adoption Curve | STRATPORT | Profit Pools | Marketing Mix | Four Trajectories of Industry Change | Co-Creation | Disruptive Innovation