Download - Business Life Cycle
Eggs ltdEggs ltd presents Pegbites
Information
This presentation was created as part of a seminar in my
College. We a group of 5 members were there. As a part
of this seminar, a skit was played. The ‘HOME’, ‘NIGHT’,
‘MORNING’, Etc. were the part of that skit. So never mind
it.
Partners
Name 1
Name 2
Name 3
Name 4
Name 5
Home
Night
Morning
Alcohol Consumption is Injurious to Health..
Partners in Discussion…
Pegbites
Eggs
1
2
3
4
5
6
7
8
Profit Analysis
..moment of the day..
Product Life Cycle
Introduction
After testing, a product enters the Introduction stage and
the product will be available in the market.
Slow Sales
Low Profits or Losses
High Cost due to high Promotional Expenses
Generally High Price
Less Competition
Growth
More Customers will start buying the product. This is
because customers of Introduction stage are buying again
or have recommended to their circles.
Rapidly rising sales
Expansion in the scale of production
Rising Profits
Lower unit cost
Competition
Stable or slightly reduced price
Maturity
In this stage, the demand for the product reaches a
saturation point and Competition becomes severe.
Manufacturers introduce new products
Number of buyers decreases
Maximum profit
Saturation
In this stage, there is no growth of sales. Competition
becomes tough. The firm uses different strategies.
Prices tend to fall
Profits starts declining
Stiff Competition
Product supply may exceed demand
Product modification and improvement
Decline
In this stage Sales began to fall and there may be little or
no profit. Production cost and inventory cost become larger.
This stage will lead to gradual phasing out of product.
Rapid fall in sales
Fall in prices
No promotional expense
Reducing distribution network to the minimum
Product technology becomes obsolete
AbandonmentThis is the last stage. Abandonment means stopping the
business or shutting down the entire firm. As now the firm
is running out of profit it cannot continue further. This
leads to abandonment of the business.
Eggs ltd