|
Most products have a certain lifespan on the market. It can be long or short
depending on product or service. Also developments in the society and in
technology will have influence on the lifespan.
Product lifespan in four periods
The lifespan can be divided into four periods:
| 3) Cash cow
- The product is now mainstream and a lot of people buy it and you can
"milk the cow" and earn a lot of money
|
2) Star
- Now people know of the product and would like to have one – maybe
it is a bit expensive but it is cool to process it |
| 4) Fading star
– Too many has tried it or the product is beginning to be
obsolite. Hopefully a new star is on it way
|
1) Pioneer
– The product is brand new and few people know of it and it is
difficult to sell |
This matrix is called The Boston matrix
Example
This lifespan counts for most products and services.
- If you open a Sports Bar and Cafe it will be unknown in the beginning and
few guests will come (Pioneer)
- If it is well driven people will say: Have you tried the new Sports
Bar and Cafe? – I have heard it is good (Star)
- If it continues being well driven many people will know it and enjoy a
good time (Cash Cow)
- If nothing changes for 3-5 years people will start finding it dull and go
to other places (Fading Star)
Where are the products of your new business in the lifespan?
If it is a fading star from start you should certainly find ways to convert it
into a star.
- Go to next
business issue: Market Description
 |
 |
 |
| |
| Elisabeth Hau Lin Hue, Singapore |
28-11-2009 |
I am a fashion designer and my product life span is about 3-6 month. I am a fast runner :-)
|
|
 |
 |
 |
Download free templates
- Download templates to help your start-up
Copyright © 2009 Dynamic Business Plan 05-02-2012
|
