Design and Technology – Business and commercial practices | e-Consult
Business and commercial practices (1 questions)
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Several factors can contribute to a product entering the decline stage:
- Technological Obsolescence: Newer, more efficient, or innovative products may replace the older model.
- Changing Consumer Preferences: Consumer tastes and needs may have shifted, making the product less desirable.
- Increased Competition: New competitors may have entered the market with superior products or lower prices.
Two strategies to revitalize a product in decline are:
- Product Repositioning: Identifying a new target market or finding a new use for the product. Justification: Can appeal to a new segment of consumers or address a previously unmet need, generating renewed demand. For example, a traditional washing machine might be repositioned as a smart appliance with remote control features.
- Cost Reduction: Reducing production costs to lower the price and maintain profitability. Justification: Can attract price-sensitive consumers and maintain a niche market. This might involve streamlining manufacturing processes or sourcing cheaper materials.