Can You Explain The Product Life Cycle Of A Particular Company, That Renders Services..?

A life cycle of a service also has four stages, introduction, growth, maturity and decline. Before launching a service, the firm caries out a lot of research and determine whether it is feasible or not. If it is then, then the firm launches or introduces the service. In this phase there are very few or no competitors and the costs are still high because it has not achieved economies of scale and there is a high investment in fixed assets. Consider citi bank as an example, they launched their services in Japan when no other international bank wanted to. At that time they had not competitors. People become familiar of the product and some of them dare to use it as well. They inform the others and gradually the sales gain momentum. Then the growth phase starts, and various other firms that were waiting to see how you perform enter the market but you still have the advantage as people are familiar with your name and you have the cost advantage. Japanese people then started to trust the bank and it grew to beat the deposits of the local banks and expanded their branch network .Now is the time to drive out competition by decreasing prices and advertising more. The service is mature when the current service without ant variation has gained all the customers who are willing to avail the service. Currently, citi bank is in the maturity state in Japan and different life cycle stages in other countries. The next phase is decline when the product looses popularity and sales starts to slump.