Life Cycle of Business - Stages of Life Cycle

1. Eggs ltd
Eggs ltd presents Pegbites

2. Information
 This presentation was created as part of a seminar in my
College. We a group of 5 members were there. As a part
of this seminar, a skit was played. The ‘HOME’, ‘NIGHT’,
‘MORNING’, Etc. were the part of that skit. So never mind
it.

3. Partners
Name 1
Name 2
Name 3
Name 4
Name 5

4. Home

5. Night

6. Morning

7. Alcohol Consumption is Injurious to Health..

8. Partners in Discussion…

9. Pegbites

10. Eggs
1
2
3
4
5
6
7
8
Profit Analysis

11. ..moment of the day..

12. Product Life Cycle

13. Introduction
After testing, a product enters the Introduction stage and
the product will be available in the market.
 SlowSales
 Low Profits or Losses
 High Cost due to highPromotional Expenses
 Generally High Price
 Less Competition

14. Growth
More Customers will start buying the product. This is
because customers of Introduction stage are buying again
or have recommended to their circles.
 Rapidly rising sales
 Expansion in the scale of production
 Rising Profits
 Lower unit cost
 Competition
 Stable or slightly reducedprice

15. Maturity
In this stage, the demand for the product reaches a
saturation point and Competition becomes severe.
 Manufacturers introduce newproducts
 Number of buyers decreases
 Maximumprofit

16. Saturation
In this stage, there is no growth of sales. Competition
becomes tough. The firm uses different strategies.
 Prices tend to fall
 Profits starts declining
 Stiff Competition
 Product supply mayexceeddemand
 Product modification and improvement

17. Decline
In this stage Sales began to fall and there may be little or
no profit. Production cost and inventory cost become larger.
This stage will lead to gradual phasing out of product.
 Rapid fall in sales
 Fall in prices
 No promotional expense
 Reducingdistribution network to the minimum
 Product technology becomes obsolete

18. Abandonment
This is the last stage. Abandonment means stopping the
business or shutting down the entire firm. As now the firm
is running out of profit it cannot continue further. This
leads to abandonment of the business.

19. Eggs ltd