Understanding Business and Product Life Cycles
Whenever I have a brainstorming session with business owners who complain about low sales, and carefully analyse their businesses, I usually discover that their industry is going through a cycle that is renderings existing products and services obsolete.
Nothing lasts forever. Time and season affects the business world. Technology affects the way we live. In few years from now, any bank that refuses to invest heavily in fintech will struggle to survive. Most businesses will be technologically driven.
Whether you like it or not, the world is on the move. Change agents are changing the way we live, the way we shop and the things we buy. Holding on to an antiquated and obsolete system will send you packing from your industry.
Life cycles describe how competitive conditions change. Business life cycle typically have stages when growth climbs, plateaus, and then falls–due to emergence of new products and services.
Some of the products I knew while growing up are no longer in the market. In fact, I still remember their adverts, but they have disappeared from the market.
A creative business owner should find new ways to do old things. That is why some companies keep upgrading and changing their brand architecture.
A German company developed a liquid laundry detergent that was superior to many powders in the market. They spent a lot of effort educating customers to the benefits of the liquid detergent.
There was only one problem–the cap on their bottle leaked. A second company entered the market–their cap did not leak.
While the first company was the pioneer and market leader, that lasted only a short while. As customers discovered the leaking cap, they switched to the competitor’s brand. The first company never fixed their cap and, in a short while, they were no longer prominent in the market.
Little mistakes are very costly in business. That is why we advise business leaders to invest heavily in research and development. Don’t push any product into the market until it is thoroughly tested by professionals. One mistake can even affect your future products.
Kodak have been struggling for ages to thrive again after the invention of digital camera. Everybody knows that Kodak is a film and photo paper company. The company used to have hundreds of thousands of employees. Unfortunately, they were too slow to jump into the digital camera revolution and lost out ever since.
Business life cycle will not be kind to people who are married to their past achievements. Customers are always searching for better products and services. Once they find it, they won’t listen to you.
As a business owner, you must be one step ahead of your competitors. The moment you release a new product into the market, start searching for another one. Don’t relent. Don’t relax. Be on your toes all the time.
I will teach you the five stages of business and product life cycles and how to prepare for each stage at the Business and Career Conference.
Click this link bit.ly/322fxVj and register.
I am a business and management consultant. You can reach me via www.ifeanyieze.com
