Decline Stage of Product

new competitors and they will tend to copy the ideas of products and try to dominate the

Rivalry: If barriers to leaving an industry are high, firms will exhibit greater rivalry and lower prices. High exit barrier forces firm to stay and compete for market share to survive and sustain..

The assignment has been split up into two tasks, firstly to analyse and evaluate Next plc, then secondly suggest any ways in which their marketing performance can be improved for future success.

Besides the failure in satisfying customers, Levitt explains industries may fail because of better substitutes. In the article, Levitt mentions about the failure of dry cleaning, electronic utilities, and grocery stores. Those industries fail because other companies research and develop better substitutes. According to Levitt, substitutes for dry cleaning are synthetic fibers and chemical additives. Substitute for electric utilities is power cell, and substitute for grocery stores is supermarket (Levitt, 2004). The failure of the three industries isn’t the same as the failure in satisfying customers and may happen naturally. The products that those industries offer are good and are able to build up into industries. However, as time passes, new technologies are invented and eventually put those companies out of business. By describing two kinds of failure in many industries, Levitt doesn’t only provide more information but also prevent possible arguments from other people.

The threat of substitutes being strong and the large amount of competitors offering relatively undifferentiated products makes it difficult for industry members to make attractive profits

With the industry adopting a more expensive and technologically advanced production system, it has created barriers to entry to smaller firms that cannot afford these advancements. This had left opportunities for larger companies to maintain their market share by being able to keep up with production demands.

Secondly, the industries are freely access, this makes the industries have many new competitors, and therefore existed companies are

Thought the product seems as though it would have a huge increase in sales and everybody would want it because it’s the newest

This new product launch marketing plan gave a detailed view of target markets, key buying behaviors. It also showed how each stage of the PLC would be managed

technological progress in the specific industry, technical efficiency, changes in output growth rate or changes in input use. Profitability can be influenced by various factors such as change in market dynamics, changes in input use or out production, and the degree of competition in the industry, or Market contestability which refers to the easiness on the part of a new firm’s entry in the market. Other factors that can have effect on profitability are the strength of demand or the state of the economy, Advertising, Substitutes, Relative costs, Economies of scale, Dynamically efficient, Price discrimination, Management, Objectives of firms etc.

By, knowing this factors we can create a strategy in competing in the market depending on these factors, after doing this we could distinguish between the long-term advantage which can increase a companies profits and grab a greater market share than competitors, or a short-time which is not the greatest, but can give

​ Last but not least is the competitive landscape of the industry.   For those in the industry it could be do or die if they do not find the consumers to purchase their product.  The smaller companies need to give the extra with their customer service and making specialized products to be able to compete with the larger companies that are able to more in the long run.  That is the best stagey that we can look at is to make sure that we are showing the

Product Life Cycle (PLC) Introduction:- A new product goes through a set of different stages said to be product life cycle. The product life cycle proceeds through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. By explaining the product life cycle stages, we clearly define the phase, each with its own characteristics that will have different impact on each reader depending on their particular situation. We discuss introduction, growth, maturity and decline. Once the product is designed and put into the market, the offering should be managed efficiently for the buyers to get value from it. Before entering into any market complete analysis is carried out by the industry for both

Due to a lack of competition the existence of cartels may lead to reduced incentives to innovate.

The Decline Stage has some characteristic: 1 Sales drop because a new innovation has been developed 2 Technology has a major influence at the intro and decline stages 3 Sales slow to disappear, consumers hold on the old ways. In the third paragraph of case, Jim has noticed his sales falling because a new innovation has been developed that is laser level. Laser levels are shorter and easier to carry than Jim`s level, and laser level can extend for over 100 feet but Jim`s levels just 4 to 6 feet for bricklayers. Most worker hold on old methods.