Services There Are Several Ways

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There are several ways that the product life cycle concept can be applied to Regal Marine products. First of all, the product life cycle determines the period of time that the product will remain in the company's portfolio. In the case of Regal Marine products, the timeframe ranges from 3 to 5 years. This, in turn, will determine the development strategies that Regal Marine will need to adopt and implement with regards to its portfolio of products, especially in terms of continuously bringing in new products to replace existing ones.

At the same time, the product life cycle can be used to evaluate cash flows at an aggregate, corporate level, and determine a coherent strategy in terms of future cash flows. As mentioned in the case study, a product is profitable at different levels throughout its life cycle: in the first stages, the overall assessment is negative, while profitability usually turns positive in the growth stage, only to decline in the final phase. With that in mind, Regal Marine uses the life cycle of its products in order to properly plan ahead its financial resources and deliverable in terms of developing new products, in parallel with the exploitation of existing ones.

Finally, the product life cycle is also used by Regal Marine in order to better monitor and address the requirements of its clients, as well as to ensure that its portfolio of products does not become outdated and can still appeal to the current and potential clients of the company.

2. Regal Marine uses a strategy based on the constant development of new products, on diversification of its portfolio of products and on customization to fit the needs of particular niches of consumers. First of all, starting with the latter, the company is not only collecting information and analyzing consumer reaction to different products, but actually promotes the direct input of design ideas from a wide array of entities, including customers, dealers and consultants. With this type of direct input, customization to fit exact consumer needs becomes one of the clear pillars of the strategy. This is also reflected in the diverse list of ships that the company has produced in the last period of time, ranging from the small, 3-passengers Rush to the luxury Commodore -- all in order to address a wider range of potential clients, with diversification and customization working together as the main elements of the company's strategy.

This is supported by the continuous development of new products, also in line with the fact that the life cycle of the product is between 3 and 5 years, which requires the constant development of new products, both to keep in line with the consumers' preferences and to ensure that the company remains interesting on the market with the products it offers, in comparison to its competitors. At the same time, all this strategy is also supported by technology, as shown through the use of Computer Aided Design in the development of new products.