The example that I'm about to give is not about a product but at the same time could be
considered one. The Gamestop brand specializes in video game sales and accessories and
collectibles. Even though that combination of products on paper are sure sign to have a
really good sales market but Gamestop is on the verge of bankruptcy. This begs the question
of how or why would such a thing happen. One problem that i see is the market's direction
which clearly doesn't align with Gamestop business strategy anymore. Video games are
usually sold as a form of software rather than a hardware. There are positives to this strategy
and that is companies such as Microsoft and Sony which produce the gaming consoles
would get more sales on their platforms rather than sharing their profits with another party.
Another positive is that by purchasing the game online it stores it in the cloud which will
stay forever. Buying a disc risks losing the game or damaging it in addition to compromising
physical storage space. Gamestop failed to reinvent their business module to align with
today's needs. All products that are being sold go through the product life cycle (PLC) once
they are introduced into the market through the time that they are no longer a hot and desired
product and eventually removed as an option for purchase. The stages of the product life
cycle are introduction, growth, maturity, and then eventually decline. These different stages
are characterized by the needs of the customers and profitability based on these needs,
wants, and preferences. As products move through these stages the amount of competition
differs, prices fluctuate, and the amount of profit made by companies vary. There are so
many products that I have seen come and go based on many different things, but one that
came to mind for me was CD players. When they were first introduced everyone had one
somewhere, whether it was included in the stand-alone radio, or a portable CD player, or
eventually replacing the cassette player in everyone's cars. As time went on and new more
convenient ways of listening to music emerged, they became less desired until eventually
there was hardly anyone that still used them, and they were no longer even available for
purchase in many of the well-known merchandise stores. They moved through the product
life cycle until they reached the decline cycle. An item that I feel as if I am familiar with is
the iPhone. I have used an iPhone since the iPhone 3GS come out. there are different ways
the Apple uses marketing wise to put out the iPhone ads one big thing is every year they do
a big conference on all Apple products. I am one of those people that like to watch the
season live to see what’s coming out every year. The lifecycle of the iPhone is dependent on
the user. Is the phone taking care of and kept up-to-date it can last for a quite a while. I have
noticed, though, that one of Apple‘s techniques is to quit updating older models of iPhones.
Therefore, the users have to buy a new one. eventually the product stops functioning how it
should.
A product that I think is interesting is coffee- more specifically the various trends and
products that have disrupted the coffee industry throughout the years. In America, for a long
time, the majority of coffee sold was instant coffee (think folgers, etc.). In more recent
times, America has shifted from cheap instant coffee to more expensive craft coffee. With
this shift, a relatively newer company called Keurig was able to combine craft coffee with
the convenience of single use cups. Their technology enabled them to get a strong hold on
the marketplace. Keurig has already faced a few challenges with changing trends- when it
became apparent that the single use pods were not environmentally friendly, Keurig had to
adapt and create a product that aligned with consumer demands. I think it's interesting to
think about what Keurig's rise in popularity did to conventional coffee pots? What has the
rising popularity of in home espresso machines done to Keurig's sales? Also, was the single
cup phenomenon just a short term trend, or does it has substantial staying power? The
product life cycle is the course of the life of a product. It begins when the product is in
development and ends after the product has been removed from the market, Whether you're
looking through your parent's old VHS tapes or shopping for a new smartphone, you're
participating in and experiencing different stages of the product life cycle, or PLC.When a
product enters the market, often unbeknownst to the consumer, it has a life cycle that carries
it from being new and useful to eventually being retired out of circulation in the market.
This process happens continually, as products move from their development and
introduction stages all the way through maturity to their decline and eventual retirement. The
product life cycle is the process a product goes through from when it is first introduced into
the market until it declines or is removed from the market. The life cycle has four
stagesintroduction, growth, maturity, and decline, some products may remain in a prolonged
maturity state for some time, all products eventually phase out of the market due to several
factors including saturation, increased competition, decreased demand, and dropping sales.
A product that I am familiar with is the snowboard and its accessories. Modern day
snowboarding was invented in the late 1960's, which was much later than skiing, which can
trace back all the way to 8000 B.C. with modern day downhill skiing invented in the 1850's,
about a century before snowboarding. This is relevant because ski's are snowboards biggest
competitors. Snowboarding is currently in its maturity stage, have gone through the
introduction and growth stages already. In the first two stages the snowboard gained
popularity and recognizability, and in it's maturity stage the snowboard is easily identified
and many brands with this product are very popular such as Burton. Product refinement and
adjustments happened in the growth stage, and now the market for this product are saturated
with companies looking for new ways to innovate and refine the products. This can be seen
with clip in bindings instead of strap on, which is new technology that is still gaining
popularity. Snowboards are also being created in more different models such as split boards.
Snowboards being in the maturity phase of its product life cycle means that these different
adjustments and inventions to the snowboard are important for companies to compete in the
market and gain profitability. It also means that production of the snowboard has been
streamlined and perfected, allowing for lower prices than when the snowboard was in the
growth and introduction stages.
