MYTUTOR SUBJECT ANSWERS

609 views

Why is the Product Life Cycle such a useful tool to use in business?

The product life cycle is a business marketing tool in which it is able to assess the stages a product goes through in its life. The four stages are

1. Introduction - Where the product is introduced to the market, slow growth

2. Growth - Increase in growth in sales and increase in speed of growth

3. Maturity - Peak in sales at this point, but the increase in speed of growth is slowly declining

4. Decline - sales begin to fall, final stage of the PLC.

Therefore using the PLC can help to analyse when a product will have most sales so the operations team can prepare to match demand with supply so there are no shortages in times of high demand and no huge amounts excess inventory, as excess inventory can be  very costly to a business.

Another reason as to why it is a useful tool is the stage in which the product will start to make a profit and for how long can be roughly estimated before hand.

Therefore these are just two reasons to show the usefullness of the PLC to a business but there are many  many more, along with having its limitations.

Ameena B. GCSE Business Studies tutor, A Level Business Studies tutor...

2 years ago

Answered by Ameena, an A Level Business Studies tutor with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

7 SUBJECT SPECIALISTS

£20 /hr

Matthew M.

Degree: MSci Computer Science (Masters) - Lancaster University

Subjects offered:Business Studies, Maths+ 3 more

Business Studies
Maths
Economics
Computing
-Personal Statements-

“About Matt: I'm Matt and I am a computer science student at Lancaster University. I have often been described as being friendly and hardworking by my friends, family and work colleagues. Prior to University I worked in the industry as...”

£20 /hr

Niall D.

Degree: Law and Business (Bachelors) - Warwick University

Subjects offered:Business Studies

Business Studies

“Hi! I’m a student of Law and Business at the University of Warwick, and achieved the highest A-Level grade for Business Studies in the UK. In the past, I’ve tutored Business Studies face to face, and have significant experience tutori...”

£36 /hr

Liam B.

Degree: Global Politics (Masters) - Durham University

Subjects offered:Business Studies, Politics+ 4 more

Business Studies
Politics
ICT
Government and Politics
Accounting
-Personal Statements-

“Education University of Durham (2016 – 2017) MSc. Global Politics Key Skills gaining:  Flexibility: demonstrated through responsiveness and collaboration in group projects.  Self-Awareness: through a higher level of academic expecta...”

About the author

Ameena B.

Currently unavailable: for regular students

Degree: Management (Bachelors) - Manchester University

Subjects offered:Business Studies, Sociology+ 2 more

Business Studies
Sociology
Maths
Accounting

“Third year Management undergraduate at The University of Manchester. Passionate about business and looking to tutor at a range of levels, including GCSE and A-level to help achieve desired grades.”

You may also like...

Other A Level Business Studies questions

Evaluate the use of marketing plans for businesses:

What is break even and why is it used?

What is cash flow?

Case Study: PLG Ltd’s financial position is relatively weak. To what extent should this be the most important influence on its promotional mix given its objective of growth

View A Level Business Studies tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok