Product Line Cycle

Summary of Product Line Cycle

The concept that a product undergoes three stages of development: (1) new product (a firm introduces a new product or significant differentiated product and for a period of time enjoys a virtual monopoly), (2) growth product (the product is imitated and produced by several firms; nonprice competition ensues and efforts are made toward differentiation), and (3) mature product (the product is widely recognized, although brand identifications become blurred; competition is based on price).

(Main Author: William J. Miller)