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 ?
It seems unlikely that goods such as raw wool, iron ore, and crude petroleum would undergo a product cycle. However, these goods do experience very large relative price changes over the sample that cause their share of total trade to fluctuate dramatically.
The product cycle explanation of East Asia's industrialization was popularized by Bruce Cumings.
They generally lag behind in recognizing shifts toward lower-cost retailers; they are also slow to incorporate new goods and, thus, miss the typical price declines that are posted in the earliest phase of the product cycle.
The opposing effects of product- and process-oriented R&D on prices are particularly distinctive of the product cycle model.
Further, Cisco's accelerating sales momentum driven by Campus switching and Security product cycle will allow the company to offset macro headwinds, adds the analyst.
A bullish stance may be justified ahead of a new product cycle launch, but until then a premium valuation is unwarranted, Pachter said.
Weaker export conditions in February were likely a result of payback from the tech product cycle that lifted shipments at the end of last year, JP Morgan's Ong said.
South Korea's Samsung has driven revenues by adopting a short product cycle, releasing a slew of products onto the market in quick succession.
"Overall revenue growth was 6 per cent, and this is before the new product cycle, which should come around October," said Rick Sherlund, an analyst at Nomura Securities.
The agency expects that the company will continue to benefit from its renewal and transformational programme, adequate technology product cycle and the exit of weaker rivals from the market since the start of 2011.
"We don't see a slowdown in our momentum," Thierry Dombreval, chief operating officer of Toyota Motor Europe, said at the Frankfurt International Motor Show, adding that its product cycle would drive an accelerated rate of growth in 2009.
Written by a Six Sigma consultant and a professor of industrial engineering, this text reviews some simulation-based Six Sigma methodologies and explains how they can reduce product cycle time, cost, and effort from conception to validation.

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