Activity II: The table below refers to words included in the product life cycle.

Question

Activity II: The table below refers to words included in the product life cycle. Match each word in column A with its definition in column B Column A I-research and development 2-decline 3-growth Column B A. The last stage of the product life cycle stages, which the beginning of the end for a product. It is characterised by the2 fall in both sales and profits. B-Innovative activities undertaken by corporations toimprove | 4- products C- Sigaificant decline in the competitiveness valuc of an article. 6 D- The stage in which the manufacturer establishes a market. E-The primary focus for most conapanle, in this stage w be maintaining their market share. 4-introduction S-mass production and saturation 6-maturity 8-middleman 9-marketing roll out 10-return on investment (ROI F- This is the key stage for establishingproduct's position in a 1H market. It is characterized by increasing sales, and improving profit margins G- Alse called flow prodaction er continoous production,i refers to the production of large amounts of prodacts H- A measure used to evalunte the efficiency of an investment relative te the investment's costs I- The group of contrellable tactical marketing tools-preduct price, place, and promotion-that the firm mises to produce the response it wants in the target market J- A middleman is a person or company which buys things frem the people whe produce them and sells them to retailers or Activity III: Pair Work. The diagram below shows a typical product life cycle in relation with competition; label the parts 1-7 with words from the table above Monopoly Competition dea Promotion First compeditors 5. Stage Stage3 Stage 4 Stage / According to the above graph, can innovation be a source of competitive advantage on its own? Explain 1- 2- Find out some benefits and risks of product innovation.

Explanation / Answer

Innovation is certainly be the key. No doubt that with thinking out of the box, one can surly create distruption in market. Right set of innovating idea, executed perfectly very well at right time, will surely lead to complete dominance in market and world has seen a lot of such cases when one brillient idea just changed the world market completely. One such example of it be evolution of technology.

In the above graph, firm which started with innovation first had better performance in stage one with more number of sales. After then in stage 2, another competitor just took over with another brilliant idea and distrupts the market of previous firm and gained more sales as previous firm fails from innovating further from existing position and thus lost his firm on market.

Benifit of innovating:

1. it gives a firm better control over market.

2. constant innvoation removes the market competitors and creates single monopoly.

3. Help in increasing sales and popularity.

Drawbacks of innovating:

1. biggest drawback is, one need to keep innovating further. you stop innovating and you die.

2. Very few ideas ends up in success note and hence it is risky.

3. you need a dedicated team and hard work with patience.

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