Differences Between Growing and Mature Product Markets in Terms of Cost Recovery

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Use extended examples to compare and contrast the characteristics of a growing and a mature product market. Critically discuss how different product market phases affect a company’s cost recovery. During its life every new product launched on the market has to pass through the different stages of the so called Product Life Cycle (PLC). During each one of the four stages, including introduction, growth, maturity, and decline, the managers of the company are supposed to work on strategies that will ensure that the product develops properly and therefore increases the wealth of the company. There are many factors that can affect the development of a given product in both positive and negative ways. The most important issues that a company has to deal with are namely these negative effects. They include various circumstances, such as competition, low demand and high prices, which are essential for the life of the product and managing to avoid, or at least bring them to a minimum, will ensure that the product will not enter its declining phase. Cost recovery performance of a business is the main aspect of business developing a product that has to be taken into consideration. Each of the different phases of the PLC will affect the cost recovery in either positive or in a negative way. Unfortunately, at some point the product will be close to facing its declining stage and that is the time where the best cost recovery strategies should be used in order to prevent this. But first of all, the difference between the growing and mature markets has to be distinguished. According to the online Business Dictionary, market growth is defined as the “increase in demand for a particular product or service over time” (BusinessDictionary.com). When the demand is high and the interest of customers in given products is increased, this leads to a growth of the company’s market and
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