The Product Life Cycle in Relation to the Diverse Activities and Essay - 3

The Product Life Cycle in Relation to the Diverse Activities and Interests of Various Stakeholders - Essay Example The paper tells that the principal stakeholders include the shareholders, securities exchange, and players in it, employees, government, competitors, suppliers, creditors, agents, dealers, environment, and customers of a business among others. The Product Life Cycle refers to the theory, which management applies to facilitate businesses understand the product’s eventual life expectancy and being able to know the standing in a life of a product at a given time. Most products undergo four principal phases in the life namely: the introduction, growth, mature or decline phases. Identifying of the phase of the product cycle enables respective stakeholders to derive strategies intended to improve the performance of the respective products. It is, however, hard to identify the exact phase in which a product belongs in the product lifecycle as a rise or fall in market performance sends mixed results. It is also not clear if stakeholders can accurately predict when the product will go into the subsequent stage of its life cycle. It is also hard for a business to ascertain when the market for a given product will reach market saturation. The management may thus get to know this during saturation and after saturation. The product life cycle model assumes all products have a life limit, which might not be the case since during the saturation phase the product starts slowing down with little or no significant growth. It is significant to note that, businesses are required to work strategically to make profits, employ many people, pay taxes to the government pay dividends to shareholders, improve wealth, and be responsible to the community.