business life cycle

Eggs ltdEggs ltd presents Pegbites

Information

This presentation was created as part of a seminar in my

College. We a group of 5 members were there. As a part

of this seminar, a skit was played. The ‘HOME’, ‘NIGHT’,

‘MORNING’, Etc. were the part of that skit. So never mind

it.

Partners

Name 1

Name 2

Name 3

Name 4

Name 5

Home

Night

Morning

Alcohol Consumption is Injurious to Health..

Partners in Discussion…

Pegbites

Eggs

1

2

3

4

5

6

7

8

Profit Analysis

..moment of the day..

Product Life Cycle

Introduction

After testing, a product enters the Introduction stage and

the product will be available in the market.

Slow Sales

Low Profits or Losses

High Cost due to high Promotional Expenses

Generally High Price

Less Competition

Growth

More Customers will start buying the product. This is

because customers of Introduction stage are buying again

or have recommended to their circles.

Rapidly rising sales

Expansion in the scale of production

Rising Profits

Lower unit cost

Competition

Stable or slightly reduced price

Maturity

In this stage, the demand for the product reaches a

saturation point and Competition becomes severe.

Manufacturers introduce new products

Number of buyers decreases

Maximum profit

Saturation

In this stage, there is no growth of sales. Competition

becomes tough. The firm uses different strategies.

Prices tend to fall

Profits starts declining

Stiff Competition

Product supply may exceed demand

Product modification and improvement

Decline

In this stage Sales began to fall and there may be little or

no profit. Production cost and inventory cost become larger.

This stage will lead to gradual phasing out of product.

Rapid fall in sales

Fall in prices

No promotional expense

Reducing distribution network to the minimum

Product technology becomes obsolete

AbandonmentThis is the last stage. Abandonment means stopping the

business or shutting down the entire firm. As now the firm

is running out of profit it cannot continue further. This

leads to abandonment of the business.

Eggs ltd