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Posted: May 3rd, 2023
Pricing for a Lifetime
Please respond to the following:
Assess the challenges of adapting pricing strategy over a product’s life cycle and suggest ways those challenges may be addressed. Provide specific examples to support your response.
Pick a product with which you are familiar that is currently in the mature stage of the product life cycle. Summarize the pricing strategy used during the first three phases of the product’s life cycle.
classmate post: please respond to classmate response
A product that I think that is currently in the mature stage of the product life cycle is the DVDs. Invented in 1995, DVDs were invented to store files as well as video programs and were watched globally. Even though the DVD has established a strong market share, they still had to deal with the challenges from other technology. Flash drives, the cloud and streaming services have beat out the DVD thus, placing it in the maturity stage. As a part of film home sales, DVDs are classified as a sale item meaning, they are not factored into the pricing strategy until the growth stage, when profits are meant to double on what films have already made.
Challenges with the DVD life cycle include predictability. When the DVD was created over 30years ago, inventors didn’t know when or how long it would remain the standard. They also weren’t aware of what product or innovations would be next. The real-life solution was the invention of the blue ray DVD. Unfortunately, that was a little too late because streaming services have since taken over.
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