Question

Sales for BMW models are often highest in the last model year. By adding versions like a convertible model or features such as an upgraded engine or a more sophisticated suspension system, what is BMW striving to accomplish?a) Harvest the product lineb) Catch a rising trendc) Invert the product life cycled) Lengthen the product life cyclee) Shorten the product life cycle

Answer 1

Answer:

The correct option is (d)

Explanation:

Products have a cycle starting from introduction, growth, maturity and decline. This is called product life cycle. Considerable investment is required at introduction stage. Once the product is profitable, it enters growth stage and at maturity, it is at the most profitable stage. A product reaches decline stage as competitors step in and better products are made available in the market.

By adding features to its models, BMW is trying to lengthen its product life cycle so as to avoid the product's entry to decline stage soon.