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CHAPTER 3 THE CHANGING MARKET ENVIRONMENT
As we shall see later ( Chapter 10 ), one of the most successful
ways of countering a highly
competitive environment is to differentiate your offering from that of competitors, in a
way that is of value to customers. That creates buyer switching costs, higher entry barriers
and helps create a defensible position in the market irrespective of industry growth rates
or costs of supply.
3.8
The product life cycle
The product life cycle (PLC) is an insightful tool into an industry’s competitive environment
( Cravens and Piercy, 2012 ) and market dynamics. Its premises are that:
●
All products have a limited lifespan until a better solution to the customer’s problems
comes along.
●
Life cycles of products follow more or less predictable patterns or phases (see Figure 3.8 ).
●
Market
conditions, opportunities and challenges vary over the life cycle.
●
Strategies need to adapt over the life cycle (see Chapter 11 ).
Each of the four key stages of the product life cycle (introduction, growth, maturity and
decline) will be introduced here.
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