Product life cycle theory

Yabresse The theory of a product life cycle was first introduced in the s to explain the expected life cycle of a typical product from design to obsolescence.

Product life cycle theory

Business Cycles ; Industry Life Cycle ; Product Life Cycle Historians and academics have observed that organizations, like living organisms, have life cycles.

They are born established or formedthey grow and develop, they reach maturity, they begin to decline and age, and finally, in many cases, they die. Study of the organizational life cycle OLC has resulted in various predictive models.

These models, which have been a subject of considerable academic discussion, are linked to the study of organizational growth and development. Organizations at any stage of the life cycle are impacted by external environmental circumstances as well as internal factors.

How to calculate Life Cycle Cost and payback times

We're all aware of the rise and fall of organizations and entire industries. Products too have life cycles, a fact that has been long recognized by marketing and sales experts.

It seems reasonable to conclude that organizations also have life cycles. Students of this subject agree for the most part that predictable patterns can be seen when viewing the life span of a business organization.

These patterns can be characterized by stages, often referred to as development stages.

Product life-cycle theory - Wikipedia

These development stages tend to be sequential, occur as a hierarchical progression that is not easily reversed, and involve a broad range of organizational activities and structures. The number of life cycle stages identified by any particular researcher will vary with the finds of other researchers depending on the granularity of his or her study.

Some analysts have delineated as many as ten different stages of an organizational life cycle, while others have flattened it down to as few as three stages. Most models, however, hold to a view that the organizational life cycle is comprised of four or five stages that can be summarized simply as startup, growth, maturity, decline, and death or revival.

STAGES OF THE LIFE CYCLE

TRENDS IN OLC STUDY While a number of business and management theorists alluded to developmental stages in the early to mids, Mason Haire's work Modern Organization Theory is generally recognized as one of the first studies that used a biological model for organizational growth and argued that organizational growth and development followed a regular sequence.

The study of organizational life cycles intensified, and by the s and s it was well-established as a key component of overall organizational growth. Organizational life cycle is an important model because of its premise and its prescription.

The model's premise is that requirements, opportunities, and threats both inside and outside the business firm will vary depending on the stage of development in which the firm finds itself.

For example, threats in the start-up stage differ from those in the maturity stage. As the firm moves through the developmental stages, changes in the nature and number of requirements, opportunities, and threats exert pressure for change on the business.

The OLC model's prescription is that the firm's managers must change the goals, strategies, and strategy implementation devices to fit the new set of issues.

Thus, different stages of the company's life cycle require alterations in the firm's objectives, strategies, managerial processes planning, organizing, staffing, directing, controllingtechnology, culture, and decision-making. Five growth stages are observable: They traced changes in the organizational structure and managerial processes as the business proceeds through the growth stages.

At birth, the firms exhibited a very simple organizational structure with authority centralized at the top of the hierarchy.In the introduction stage of the life cycle, an industry is in its infancy.

Perhaps a new, unique product offering has been developed and patented, thus beginning a new industry. Product Life Cycle is defined as, “the cycle through which every product goes through from introduction to withdrawal or eventual demise.” Image Title: Product Life Cycle Stages The life of most products can be divided into five key stages.

A product life cycle refers to the time period between the launch of a product into the market till it is finally withdrawn from it. In a nut shell, product life cycle or PLC is an odyssey from new and innovative to old and outdated!

Product life cycle theory

Life-cycle assessment (LCA, also known as life-cycle analysis, ecobalance, and cradle-to-grave analysis) is a technique to assess environmental impacts associated with all the stages of a product's life from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling..

Designers use this process to help critique their. The product life cycle describes the period of time over which an item is developed, brought to market and eventually removed from the market.

The cycle is broken into four stages: introduction. There is a noteworthy difference in approach to the life cycle of a product between the business point of view and the ISO point of view.

Product Life Cycle (PLC): Stages, Development and Process