TITLE:
Modeling of the Shrinking Product Life Cycle
AUTHORS:
Sarbjit Singh Oberoi
KEYWORDS:
Product Life Cycle, Innovation, Demand & Supply, Industry Dynamics, Yield Management
JOURNAL NAME:
Theoretical Economics Letters,
Vol.9 No.1,
February
15,
2019
ABSTRACT:
Generally, it is
considered that the products have five phases in their life cycle, namely, introduction, growth, maturity, saturation and decline. But with the rapid advancement of technology and globalization, the product life has
dwindled. This paper studies the life cycle of the products whose life cycle
has been reduced to only three phases. The life cycle of the various products
especially electronic goods (mobile phones) has been
studied and it has been observed that life span of these products has been reduced
drastically. Another observation is that the introduction and the growth phase
have been clubbed into one. Many of the products either will have the growth in
the initial part of their life cycle or will be unable to survive, so there is no possibility of the other phases of
life cycle. This study formulates a model for the products having only three
phases of the life cycle and having a very
short life span. While the earlier models have considered five phases of
product life cycle with longer duration. The mathematical model considered here
has only three phases of life cycle which matches with the life cycles of the
electronics products, whose demand increases rapidly during the growth period
and declines exponentially during the decline
phase.