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Volgvan
3 years ago
9

List the phases of the business cycle and describe how the different phases begin and end.

History
1 answer:
natta225 [31]3 years ago
8 0

The Business Cycle of a product or service has 4 stages:

  1. <u>Introduction:</u> The product/service is new to the market and only acquired by "early adopters", which are a category of consumer that tends to buy novel products.
  2. <u>Growth:</u> The product/service is well known in the market and there is a large portion of consumers in the market that, after being informed and validated its benefits, want to acquire it. 
  3. <u>Maturity:</u> The product/service has become a "Cash Cow". In other words, the organization offering it does not have to incur in major cost rather than production costs to sell it. The product sells by itself and has become an important source of income for its manufacturer.
  4. <u>Decline: </u>The product's/service's consumption is undergoing a gradual reduction. This usually caused by the appearance of substitute products that cause the consumers to shift their attention towards them. 
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