Product Life Cycle Analysis

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New Product Launch Product refers to an item or service developed as a result of a process so as to satisfy consumer needs. Notably, a product undergoes a life cycle which involves introduction, growth, maturity and finally decline (Hanks, 2015). In brief, the product life cycle concerns the evolution of the product through the introduction, growth, maturity and decline phases. Undeniably, the length of the lifecycle is influenced by marketing mix as well as other market activities. In this regard, a company such as Nike Inc. allocates significant resources in a bid to understand market activities and develop effective plans for introduction of new products. Importantly, different stages of the product life cycle are associated with unique…show more content…
In addition, the departmental procedures and relations contribute to the company’s overall efficiency and performance. Consequently, management of the company has to factor in for internal factors to avoid low performance of products. Ultimately, the management philosophy on different work processes will affect the motivation of the workers as well as the cohesiveness of its departments. External factors are uncontrollable from within the organization’s structure, therefore the company has to conduct competitive analysis of their product and target market. In this regard, product lifecycle analysis is carried out to project possible trends and behavior of the product in the presence of competitors. Other external factors include political- social environment, legal structure and technological factors. Usually, when Nike is in competition with a local rival such as Addidas, external market factors are uniform across the board, therefore the company’s internal structure and overall efficiency defines its market performance. However, when competing at the international market, Nike has to face different sets of rules compared to the competition. For example, the United States emissions laws are more stringent compared to some of the Asian countries such as China. Obviously, Nike has to spend more resources in establishing its structures in compliance with the legal standards; on the other hand, the Chinese company spends less on the same and is able to translate this in pricing of its products. As a consequence, Nike has to sell products at a higher price as compared to the rival resulting in lower sales in the international level. Notwithstanding, market trends at the international level require different analysis as opposed to local or domestic markets. The launching of a Nike product requires a greater
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