All products have a life cycle. But, technological products seem to grow, mature and wither at a faster speed than other product categories. A new technology will give competitive advantage to the producing company for lesser period of time than any other kind of product. When a company comes up with a new technology, it should think about the various stages the product will go through and devise a plan, so that the product can deliver profits at every step. In this article, we will explore about the stages in the life of a product.
Technology life cycle talks about the costs and profits of a product from the stage it gets technologically developed through maturity in market to decay.
- The cost incurred in the research and development (R&D) phase should be overcome when the product is launched in the market.
- Varying lifespan of products indicate that business establishments must understand and use the returns on their investment for research & development on longevity of product in the market.