Question

The CEO of David's firm just came back from a business seminar. He called David into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that:

Answer 1

Answer:

It is difficult to identify precisely in which stage of product life cycle each product is.

Explanation:

Products go through four stages in product life style starting from introduction, growth, maturity and decline.

It is difficult to identify in which stage a particular product is in as duration of each stage is unpredictable. This is the reason, David will not be able to precisely detect when maturity of a product ended and decline started.

A product cannot be just put in growth stage by merely checking its increasing sales record. Similarly, falling sales do not always imply decline.

Therefore, David needs to think fast for a good answer as it is impossible to accurately identify product life cycle.