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Product Lifespan
Most products have a certain life span on the market. It can be long or short depending on product or service.
Also developments in society and in technology will have influence on the life span.
Product lifespan in 4 periods
The lifespan can be divided into four periods:
| 3) Cash cow
- The product is now mainstream and a lot of people buy it and you can
"milk the cow" and earn a lot of money |
2) Star
- Now people know of the product and would like to have one - maybe it is a bit expensive but it is cool to process it |
| 4) Fading star
- Too many has tried it or the product is beginning to be obsolete. Hopefully a new star is on it way up
|
1) Pioneer
- The product is brand new and few people know of it and it is difficult to sell |
Example
This life span counts for most products and services.
- If you open a Sports Bar and Cafe it will be unknown in the beginning, and few guests will come (Pioneer)
- If it is well driven people will say "Have you tried the new Sports Bar and Cafe? – I have heard it is good" (Star)
- If it continues being well driven many people will know it and enjoy a good time (Cash Cow)
- If nothing changes for 3-5 years people will start finding it dull and go to other places (Fading Star)
Your business
Where is your new business in the life span?
If it is a fading star from the start, then you should certainly find ways to convert it into a "star".
Vision without execution is hallucinations.
- Thomas Edison, inventor
