The product’s initial stage is the most profitable.
In the initial stage of a product’s lifecycle, profits are often high. This product is the result of extensive research and development. This product is innovative and new, so the company wants to take advantage of it. Customers are excited to have the product and there is an opportunity for the company to offer a higher price in order to maximise profits. This is a great opportunity for the company to increase its market share as well as gain recognition and brand loyalty. Customers can be enticed to buy products by offering incentives or promotions. As the product gains further acceptance in the market, the company can reduce prices and compete more effectively with other brands (Ebben & Johnson, 20017). A company’s introductory phase is an exciting time. They have the opportunity to build a strong brand and increase their market share. It is also a period of great risk because the company has to ensure the product meets its expectations, and the customers are satisfied (Moyer, et al. 2018). If the investments are made and the approach is right, the company will be able to…
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