A key concept in product portfolio management is the product life cycle (PLC) (see Figure 2.3). The PLC is based on the assumption that products move through a series of stages from their introduction, passing through a growth stage, followed by a maturity phase in which sales remain stable, through to a decline phase and final withdrawal from the market. Products tend to lose money when they are first introduced: sales are low, marketing costs are high and there no economies of scale in production. Eventually, if the product follows the PLC, ...
The Product Life Cycle
The product life cycle