Product Life Cycle — The Basic Concept

Inception Producers compete in a start-up mode. The products are new and markets are forming. As they do, supply chains take shape. No dominant supply chain model has emerged. 

Growth As the market expands, winners have been sorted out on base product features and less so on supply chain features. Profit margins are high. The principal supply chain mission is availability. 

Decline Demand falls and the industry consolidates. Some attempt rejuvenation of the product or supply chain. Competitors quit the market. New products are introduced as substitutes. 

The model has been around for a long time, and many readers will be familiar with it. The model helps us understand the relative importance of supply chain features, as distinct from product features, to product success. 

New products occupy the inception stage. Competitors typically focus on translating customer requirements into product designs. Leaders will have great product features and may also do well at delivery and cost. This is particularly true if they have mastered processes for introducing new products. However, it is the product that is center-stage. Supply chain 

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