ABSTRACT
Products have a typical pattern of identifiable stages, forming the life cycle. Heavy investment, market research and idea generation take place at this stage. Growth stage is significantly increased market demand and a move into profit. Maturity stage is a slowdown, possibly leading to a decline in sales. Stable or reducing profits are expected. Shake-out stage may be a shake-out amongst competitors, during which some may withdraw and others may become stronger. Decline stage is typified by a significant reduction in sales and profits. The longevity of different products varies greatly from fad products, such as skateboards possibly lasting just a season, to established products, such as televisions, with a life of many years. Between the growth and maturity stages the market is saturating and the relative strengths of competitors become important, often leading to a shake-out in the number of products.
