Product Life Cycle (Quick Revision) Flashcards Preview

A2 Business Studies - Operations Management (Quick Revision) > Product Life Cycle (Quick Revision) > Flashcards

Flashcards in Product Life Cycle (Quick Revision) Deck (7)
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1
Q

Define: Product Life Cycle

A

The product life cycle shows the sales of a product over its life.

2
Q

What labels are on the axis of the product life cycle diagram?

A

Time is the Y axis

Sales is the X axis

3
Q

State the stages of the product life cycle.

A

Introduction - Growth - Maturity - Decline

4
Q

If R&D helps to modify a product and keep sales growing, this is an e……………. s……………. Give two examples.

A

Extension strategy;

  • Finding new uses for the product
  • Finding new markets for the product.
5
Q

The B………… M………… provides an overview of the position of all the firm’s products. State the four types of products that is shows.

A

Boston Matrix;

  • Dogs
  • Cash cows
  • Stars
  • Problem children/question marks
6
Q

What is the Examiner’s note for Product Life Cycle?

A

Research and development can produce new products to compensate for the fall in sales of existing products during the decline stage of their life cycle.

7
Q

What is the Evaluation point for Product Life Cycle?

A

The product life cycle model may be of limited value. It is usually only clear afterwards what stage of the cycle a product was in before.