Product cycle

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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 ?
Trending reports can be tailored track brand market share shifts, producer product testing, product cycles, new product development programs and other product-use analyses.
Accelerating product cycles are increasing intense product competition and higher levels of spending on advertising and incentives One remarkable set of figures that Accenture has put together from various sources compares the amount of money spent in 2003 by Ford, GM, and OCX on global product development versus advertising and incentives: $20.
In a dynamic, general-equilibrium Ricardian model of North-South trade, the incompleteness of contracts leads to the emergence of product cycles.
Industry sources expect this to be the case at least through 2005, but expect a return to somewhat longer product cycles after that.
Achieving a seamless flow of data from computer aided design part models to equipment on the factory floor is a key requirement to shorten product cycles.
As a result, Tuxedo LEC has helped us meet our aggressive product cycles and customers' turn-around requirements.
The primary goal of this paper is to use the most finely disaggregated comprehensive data available to search for evidence of dynamics in international trade flows, especially those that might be related to product cycles.

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