introduction phase is usually associated with slower growth as the public is

Introduction phase is usually associated with slower

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introduction phase is usually associated with slower growth as the public is not familiar with the product, the sellers may not be adequately trained to sell, and clear and definite distribution channels are yet to be established. Demand for the product is also quite immature at this stage. Growth - The growth phase is when your product starts to sell at a much faster rate. The public is becoming increasingly aware of your product and word of mouth is starting to spread. The product’s capabilities are now recognized and product development has matured (the rate at which you’re changing your offering slows). Maturity - The maturity phase is when your product’s sales begin to peak. Demand is strong and the service is now booking out. Very soon, the product will begin to compete with new alternatives being introduced into the market. Decline The decline phase refers to the period when the product reaches its saturation point. In this case, the price can start increasing, though the number of sales will decline. In this phase, a decision is needed: whether to continue with the product with significant changes or to move onto another product altogether. 16. What stage would McDonald be in on the Product Life Cycle? Why? The company is in the market maturity stage of the product life cycle. 17. Undertake a Value-Chain Analysis of McDonalds. Primary Activities The primary value chain activities of McDonalds are directly involved in producing and selling the product to targeted customers. Analysis of primary value chain activities can improve the performance of McDonalds as explained below. - Inbound Logistics
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It is important to develop strong relationships with suppliers as their support is necessary to receive, store and distribute the product. Without analysing the in-bound logistics, McDonalds can face various challenges in product development phases. Analysis of in-bound logistics requires a company to focus on every aspect of transformation from raw material to finished product. Some examples of inbound logistics are retrieving raw material, storing the inputs and internally distributing the raw material and components to start production. - Operations The importance of analysing operational activities raises when raw material arrives, and McDonalds is ready to process the raw material into the end product and launch it in the market. Some examples of operational activities are machining, packing, assembling and testing. Equipment repair and maintenance also falls into this category. It includes both- manufacturing and service operations. Analysis of operational activities is important for improving productivity, maximising the efficiency and ensuring the competitive success of McDonalds. The increased productivity can help McDonalds to achieve consistent economic growth, increase profitability and set a powerful basis for competitive advantage.
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