Effective growth strategies are a result of trial and error as a company analyzes past business practices. Careful consideration of which practices worked and which ones failed gives a company insight for development and improvement. Mergers and Acquisitions Mergers and acquisitions can be an effective strategy for growth at the corporate level.
The defining characteristic of each stage is the amount of revenue that can be generated during the cycle. Though the stages move progressively from development to decline, an individual company can enter their product into the cycle at any stage.
For example, an inventor of a new type of television follows the cycle beginning at development, while a competitor copies the design and enters at a later stage.
Every stage in the product life cycle has different strategy objectives. Product Development This is the invention and creation stage of the product life cycle.
During development, marketers may use research to determine what types of people their product might appeal to. Until awareness of the product is spread, initial sales will be low. There is little to no competition in the introduction stage, so markets are free to set their own objectives regarding the price of the product.
Video of the Day Brought to you by Techwalla Brought to you by Techwalla Growth Objectives As awareness of the brand increases, so do sales of the product, making the growth stage a profitable part of the cycle.
Competitors begin to enter the market during the growth stage, so objectives include maintaining the appeal of the product and encouraging brand loyalty.
Marketers may choose to research and target other markets during this stage.
Maturity Objectives Out of all the stages, maturity is the most profitable part of the cycle because product awareness is high and advertising expenses are low.
The primary objective of the maturity stage is to extend this portion of the cycle for as long as possible. Marketers may make minor adjustments to the product to make it seem different from competing products and to encourage renewed interest.
Decline Objectives As the title suggests, sales take a downturn during this stage. Decline-stage objectives vary depending on what the business wants to do with the product.
Minimizing revenue loss becomes a main goal. Marketers may fight to extend the life of the product, let sales dwindle to nothing or drop the product line entirely.The 3 Stages of Organizational Development.
By Dr. Roger K. Allen Leave a Comment. Prescriptions for Achieving Outstanding and Sustainable Results. By understanding a simple model of three stages of organizational growth, organizations can design themselves to move beyond chaos to high performance.
Organizational growth is, in fact, used as one indicator of effectiveness for small businesses and is a fundamental concern of many practicing managers. Organizational growth, however, means.
The 3 Stages of Organizational Development.
By Dr. Roger K. Allen Leave a Comment. Prescriptions for Achieving Outstanding and Sustainable Results.
By understanding a simple model of three stages of organizational growth, organizations can design themselves to move beyond chaos to .
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). the concept of organizational life cycles, discussions of the this concept have taken Characteristics at Different Organizational Life-Cycle Stages Table 1 Characteristics Inception stage High-growth stage define the stage of life cycle growth (Gordon Lippitt, Growth Stages in Organizations, New York; Appleton – Century – Crofs.
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).