PRODUCT LIFE CYCLE

PRODUCT LIFE CYCLE AND ITS STAGES
1. Introduction stage
2. Growth stage 
3. Maturity stage 
4. Decline stage

1. In the introduction stage, sales are small and the rate of market penetration is low because the industry's products are little known and customers are few, the novelty of the technology, small scale of production, and lack of experience means high ross and low quality. customers for new products tend to be affluent, innovation-orientes, and risk-tolerant.
2. The growth stage is characterized by accelerating market penetration as  technical improvements and increased efficiency open up the mass market.
3. Increasing market saturation causes the onset of the maturity stage. once saturation is reached. demand is wholly for replacement.
4. Finally, as the industry becomes challenged by new industries that produce technologically superior substitute products, the industry enters its decline stage.

  CREATION AND DIFFUSION OF KNOWLEDGE
   The second driver of the industry life cycle is knowledge. New knowledge in the form of product innovation is responsible for an industry's birth and the dual processes of knowledge creation and knowledge diffusion exert a major influence on industry evolution.