7 - Product life cycle (PLC) - Extension Strategies

Question 1

Demand Pull

Answer 1

• Producers respond to the ‘demand pull’ of consumers’ desired features
• E.G improved battery life in smartphones

Question 2

Technology Push

Answer 2

• Research and development leads to a ‘technology push’ of new ideas
• Consumers need to be ‘sold’ the merits of these new ideas and features
• E.G Google failed to convince consumers that the ‘Google Glass’ headset was worth the expense

Question 3

Planned obsolescence

Answer 3

• The design and manufacture of products so that they require replacement on a regular basis
• E.G Software incompatibility or unavailability of spare parts

Question 4

Evolution of products

Answer 4

• Gradual change due to new technologies, manufacturing methods, materials etc.
• R&D departments explore and try to develop new ideas
• R&D is however very expensive, costing Apple $2.5 billion in 2016