Product Lifecycle Applying the Concepts

Product Lifecycle

Applying the Concepts of Product Life Cycle to a Network Component

The concept of the product life cycle defines the series of phases a product goes through from new product development, introduction or launch, growth, maturation and eventual discontinuance or product line extension to further support a company's brand. The new product development process (NPD) often takes between two or five years or more depending on the complexity, synchronization of development efforts with suppliers, and the need for entirely new technologies to be developed to support the developed product. In the case of an entire new network component being developed, there are typically between 18 to 30 months invested in the development cycle, with the product introduction being planned at least four months or longer before the actual launch date. It is also during the first phase of products being developed that the need is greatest for ensuring the product is developed with the unmet needs of customers foremost in mind followed by a continual evaluation of its cost structures and potential pricing scenarios at launch (Burkett, 2006). During this first phase of a product's lifecycle it is common for advisory councils, focus groups, and market research to ensure the product under development stays aligned with users' needs. The product launch or introduction is often the most lucrative point in many products' history, and as a result, many organizations create project teams and invest heavily in the launch event and programs. Making the most of the differentiation available in an entirely new product, in addition to introducing an entirely new product generation will lead to new markets potentially is the strategic objective. The growth phase of the product lifecycle concentrates on getting sales to increase, increasing trial and use of the specific network component, working with distributors and dealers to more illustrate the performance advantages, and also concentrate on the opportunities for earning gross margins through the channels of distribution as well. The maturation process is one where the products are typically competed against based on price, and this is certainly the case with network components. In the case of routers and switches, the basic functionality is evaluated first by customers to make sure the specific product will meet their needs, yet price and availability are what typically win sales in this phase of the product lifecycle. Finally, the harvesting or product line extension phase is when a company will either choose to discontinue the product, or extend its brand by adding additional features or bundling services with it. The product lifecycle is a useful concept for evaluating the strategies a product needs over the period of time it is for sale.