Product Life Cycle PLC
Every product has a biological destiny; it is born, reaches its peak, and is ultimately buried in the ruthless graveyard of technological evolution. The key is knowing which weapon to draw at which stage.
Just like living organisms, commercial products have a Product Life Cycle (PLC). The strategy you apply when first introducing a product to the market is the exact opposite of the strategy you use when that product dominates the market. The PLC consists of four main phases: Introduction, Growth, Maturity, and Decline. A strategic error is funding a product in its maturity phase as if it were still in its growth phase.
In the introduction phase, the goal is simply to exist; profit margins are negative, and the marketing budget is burned. In the growth phase, competitors smell blood and attack the market; preserving market share is essential here. The maturity phase is the "Cash Cow" era; innovation slows down, and the company milks maximum profit from that product. In the decline phase, there is no room for sentimentality; the decision to pull the plug (harvesting) or pivot the product must be made with mathematical coldness.
