Boston Consulting Group Training Course: Product Life Cycle Development in the Face of Competition

Penetration pricing works best as the product hits the mainstream market and competition is vying for share product life cycle. Pricing penetration is typically practiced as the new product is about to reach the mainstream market. In the mainstream market, rapid market penetration is necessary for survival. Most companies, both incumbents and new entrants will adopt product life cycle to absorb share. ”Me too” companies are quickly emerging, forcing up supply, and thereby putting pricing pressure of the product. Big organizations will likely adopt product life cycle to put up barriers to entry and force out or deter small players. When the competitive environment is like this, this is a race to compete to be the leader in the market.

To foster innovative thinking, we must try to create the right factors are in place, such as timing and strategy development contribution product life cycle. Often the product life cycle session is not given enough time. Personnel in the product life cycle session must be from a diverse mix of areas, that involve both internal and external people, and should have intimacy with the issue at stake. A diverse team bringing varying points of view will make for better results for strategy development. Separate product life cycle effort from financial planning. Every situation usually requires a different mix of expertise.

Nine time tested niche corporate strategies are already identified based on synthesizing well over 400 thousand private companies product life cycle. For every niche company, there is to your time for you to fight and there is time and energy to sell. If you’re a niche player, make sure to adopt the appropriate technique for the actual stage of one’s industry’s development. Adopting the correct niche technique is critical. For every single global consolidator, there are thousands of acquisition opportunities. Selling at the wrong time cost a lot of cash. Each niche product lifecycle stages is most beneficial at particular phases of industry consolidation. If the niche company doesn’t sell, it must evolve its niche strategy. 90% of companies existent today are not around in Twenty five years.

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