3 Main Benefits and Limitations Of A Product Life Cycle Management
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For companies and manufacturers who introduce a new product now and then, Product Lifecycle Management is not a new term. The four stages involved in the life cycle of a product are crucial for a company to know how the product is performing and when they need to make new strategies to help the product cope with the competition.
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The Product Life Cycle is a fantastic product to help companies and their managers and marketers to frame new product strategies on time. It is beneficial to find out what the stage of the product is to design the plan accordingly. However, this also has some disadvantages along with the advantages. Read on to find out.
Benefits Of Product Life Cycle Management:
1.Strategizing: Undoubtedly, the main advantage of the life cycle is ready to strategize according to the stage in which the product currently is.
2.For instance, if the product is now in the growth stage, then the company can make plans to market and promote the product effectively.
3.Decision Making: The Product Life Cycle Management collects both sales and performance data, which are vital for decision making. The life cycle gathers and interprets data, and this further helps the managers in taking important decisions, based on the data available.
4.Competitive Benefit: To avail competitive advantage from the life cycle, the company can run the product lifecycle management of their competitors and find out what measures they are taking. Accordingly, the company can make decisions to stay a step ahead of their competitors.
Disadvantages Of Product Life Cycle Management: 1.Fluctuations In Sales Data: One significant drawback is that the sales might fluctuate or if there is an error in predicting the sales, the entire strategy might go wrong. The whole of planning and graphing is dependent on sales data. Such fluctuations might be due to production issues, seasonal effects or something else. 2.Market Conditions Might Vary: The sales of a product might not be same in every region or place. In one place, the product might perform well, while in others it might not. Hence, the market conditions also influence the prediction of sales and can affect the decision making.
Other Factors: A single product is affected and influenced by price, place, people, and promotions.
Hence, the analysis of product lifecycle management might not be accurate all the times. The life of the product might differ from what was predicted and what it was. There are goods and bads of everything, but that should not stop a company from adopting product lifecycle management system.
The disadvantages are way less compared to the benefits, and it all depends on the way data is predicted and analyzed.