Question

The CEO of David's firm just came back from a business seminar. He called David into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that:______________.
A. the product life cycle works only for certain types of firms.
B. the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation.
C. it is often impossible to identify with precision where a product is in the product life cycle.
D. the product life cycle is not a useful concept.
E. the idea has been discredited by recent research.

Answer 1

Answer:

C. It is often impossible to identify with precision where a product is in the product life cycle.

Explanation:

A product life cycle consist of different stages in the life cycle of a product that determine how much more profit it can bring to the firm and lets the firm know when they need to come with a new plan or what they need to do in order to keep the sales from dropping.

It is hard to figure out which stage each product is because the characteristics of each stage are over lapping. There is always room for error.