Chapter 11.2, Problem 5R

To determine

To explain: The product life cycle of videocassette tapes with its introduction, growth, maturity and decline stages.

Explanation of Solution

Product life cycle: This is a series of stages where a product passes through different situations. The product is first introduced into the market which is called the introduction stage, then the product grows into the market and reaches the level of maturity which is the growth and maturity stage respectively. Then the product starts declining in the market which is called a decline stage.

Each product has a specific product life cycle. In the case of videocassette tapes, when this product was introduced in the market, it was a very exciting product in the market. The product reached the growth stage very soon and was sold immensely in the market. Due to changes in technology, the life cycle of this product was short, it reached the maturity stage very soon. This product was replaced in the market by compact discs which were compact in size and had large memory storage. The product started declining soon in the market.