PRODUCT LIFE CYCLE

The life cycle of a product begins when the product is released (see Figure 5.2). The life cycle has distinct, identifiable phases (inception, sustained sales, obsolescence), and you will need to verify that the position of the product on its life cycle curve aligns with your investment goals. Are you looking for an investment in an innovative new product, for instance? Or are you looking for a more predictable return based on the growth of a well-known and trusted product line? Where is the product in its life cycle?

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Figure 5.2 The Product Life Cycle Curve

The slope of the product life cycle curve is a risk/opportunity indicator. ...

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