Product Life Cycle Grid

In the last chapter, we examined three frameworks, or models, that offer different ways to think about supply chain strategy. The model described in this chapter uses the product life cycle to define the product s position in its competitive market. The model helps us imderstand the relative importance of supply chain features, as distinct from product features, to long-term product success. It also brings into play the notion of time-criticality in supply chain innovation. As George Stalk noted in his article, time can be the dominant element in a strategy. 

The supply chain features, as we noted in Chapters 1 and 2, are part of what we have called the extended product. Competitor imitation or lapses of patents eventually enable competitors to imitate the physical features of the product itself. Extended product and supply chain features, in turn, often become the principal basis for competing. 

The Supply Chain dimension includes not only the distribution of the physical product but also the many activities that compose delivery of the extended product as well. Examples include accompanying services such as technical support, financing, and distribution. The best in class often have great service reputations, if not exceptional products. The also ran companies are ones we avoid if possible. 

Producers compete in a start-up mode. The products are new and markets are forming. Supply chains are taking shape. No dominant supply chain mode has emerged. 

The market expands. The winners have been sorted out based primarily on product and, to a lesser extent, on supply chain features. 

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Figure 5.3 maps the product life cycle with innovative and functional products. The four-quadrant grid shows each life-cycle phase, starting from the upper right. The top quadrants are the domain of innovative products, while functional products populate the bottom two quadrants. 

The grid is helpful in applying the product life cycle to supply chain strategic planning. The product life cycle is a common business model applied by marketers and strategists. The curved arrow represents four phases of the product life cycle faced by the product. These correspond to the quadrants on the grid in Figure 4.1. 

We ve also noted that new products are moving more and more rapidly through the quadrants of the product position grid (refer to Figure 5.1). This is reflected in the shortened product life cycles common in newer products. So we believe it will be even more important than ever to plan the supply chain along with the product s movement across this grid. As the product moves from one quadrant to another, the supply chains need to change. 

Finally, the conversion of the primary metal into the product and the form which are actually utilized in the battery system should be considered. For example, the electrode materials in lead acid batteries are normally cast lead or lead-alloy grids. The materials utilized in NiCd batteries are cadmium oxide and high surface area nickel foams or meshes. Technically, all of these factors should be considered to produce a detailed life cycle analysis. However, again, these differences are generally quite small compared to the principal variables - composition, performance and spent battery disposal option. 

Important for the maintenance-free properties of these batteries was the possibility to use antimony-free grid alloys instead of the conventional lead-antimony alloys, which were used only at this time. Because antimony in the grid alloys provides a high cycle life for the battery, it was necessary to develop more sophisticated methods in battery manufacturing in order to achieve the required product properties. 

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