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Product life cycle

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Product life cycle

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
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  • October 17, 2016 at 2:23 pm #344290
    mansoor
    Participant
    • Topics: 424
    • Replies: 542
    • ☆☆☆☆

    Good Evening

    1. in the Decline phase it is said that COMPETITION characteristic is “heavy discounting/price wars.

    – my question is: is the competition in decline phase low/medium/high?

    2. in the growth phase, technology is described to be “narrowing in the range of technologies applied”. can u please explain this?

    thank u

    October 18, 2016 at 7:57 am #344539
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10595
    • ☆☆☆☆☆

    It can vary.

    For some products, decline means that competitors desert the market quickly and you are left with no competition. In most cases, I think, firms try to squeeze whatever remaining revenue there is from the market and competition is high.

    I have no idea what the second quote is getting at. A growing market can stimulate companies to try to use alternative, hopefully better, technologies. At the end of the growth phase, when the mature phase starts, the weaker technologies usually fall by the wayside and only the best technoligies will survive.

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