Product cycle

Product cycle

The time it takes to bring new and/or improved products to market.

Product Cycle

The period of time from the introduction of a product to its decline and stagnation. Different analyses posit different numbers of stages in a product cycle (usually four to five), but all emphasize that a product has a beginning, with technological innovation; a period of rapid growth; maturity and consolidation; and, finally, decline and possibly death. For example, in the video cassette recording (VCR) industry, the mid-1970s were a period of decentralized technological innovation, with VHS and Betamax formats vying for dominance. Later, video cassettes very quickly became a common household item. In the maturity phase, different companies selling VCRs attempted to corner a greater market share for their own (identical) versions of the product. Finally, the industry declined and was eventually supplanted by DVD players. Factors that may prolong a product cycle include the opening of new markets for the product, finding new uses for the same product, or even attaining government subsidies. The concept of product cycles applies most readily to the sale of goods and it is difficult to gauge how it works in a service economy.
References in periodicals archive ?
Tokyo, Japan, July 26, 2006 - (JCN) - Mitsubishi Materials has developed and begun marketing a wireless temperature and humidity sensor unit with a product cycle of 7.
As a result, a new version of the product cycle emerges, in which manufacturing shifts to the South first within firm boundaries, and only later to independent firms in the South.
Jorgenson expects that the growth in capital quality will continue at its recent high rate for as long as the semiconductor product cycle continues at a 2-year interval.
Both the Mini, introduced last year, and the new BMWbuilt Rolls-Royce which is due to go on sale in January, would be less profitable in their first product cycle than the firm's BMW brand cars.
We believe that to best achieve market requirements for low cost, technology agile products, it required direct investment by RadioFrame in the entire product cycle beginning with our own silicon," continued Brown.
With product cycle time being slashed to keep up with consumer demand and competitive pressure, new electronic products are going directly from computer-aided design to full-scale production.
The Stable Rating Outlook reflects Sun's significant cash balance, considerable new product cycle and extensive restructuring plan designed to accelerate the company's return to consistent profitability.
The 2005 China Semiconductor Handbook contains profiles of nearly 400 semiconductor companies operating in the product cycle of the semiconductor industry in China, organized in a convenient alphabetical order.
Our strategy is to become a one stop shop where all elements of the product cycle are housed and available for our clients.
This new alliance between Hitachi Consulting and Agile Software will offer companies strategy and business process services, along with proven technology solutions that help increase profit while reducing product cycle times.
Tracey will be specifically responsible for the day-to-day operational oversight of the Company's product cycle from right-of-entry sales, to construction of systems, to subscriber deployment and service.
Today's increased competition, the need to dramatically reduce product cycle times and cost and the challenges of a global and distributed product development environment have created the need for breakthrough design, collaboration and management solutions for the semiconductor industry," said Mark F.

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