Manufacturing Technologies - Assignment 1 Example | Topics and Well Written Essays - 2000 words

Manufacturing Technologies - 1 - Assignment Example382). In the present technologically ever-changing environment, the makers of goods and services need to improve on their current harvest-feasts to survive. Hence demand forecasting is crucial for the companies to involve their product satisfy the needs of the consumer. Hence the concept of Product life cycle is very important. It is a tool through which we tin analyse the demand within an persistence. Through this PLC, it is possible to identify when a product needs to be replaced to make way for another product so that the manufacturer can make decision of introducing another new product replacing the existing one so that the manufacturer can earn profit (Gillies, 1996, p. 127). According to PLC theory a firm in any industry can predict the shift of product from one stage to another and hence will be able to adopt proper marketing-mix polices like when to replace a product with newer improved version to accumulate the expecta tions of the consumers. In 2004, the replacement purchases accounted for 55% of the digital camera sales, 63% of cell phones sales and 82% of reckoner sales. Product Life Cycle A product life cycle shows the sales pattern a product over a period of time. The time span begins with the period of introduction and ends with replacement of the product. raw material Stages in the Product Life Cycle Figure 1 Product Life Cycle opening / Development stage. Growth Stage Maturity Stage Decline Stage Here we will cut down mainly on the Maturity Stage. It is here where the manufacturer has to get rid of old products and enumerate come out with strategies to rebrand the old products or manufacture and altogether new products in their portfolio of products. In the Maturity stage the product looking ats lot of market competitors and hence the profit declines as percentage of the sales (Grieves, 2006, p. 23). Hence companies when facing this has to come up with strategies to preserve their c ustomer base and achieve profitability. Automobile Industry Figure 2 PLC of car Industry In automobile industry the car manufacturers needs to replace their old cars with new cars to work the demand and needs of the customers. Automobile industry faces extraordinary level of competition, which make the carmakers produce cars with a high degree of differentiation (Kumar and Krob, 2006, p. 114). This makes the demand oftentimes elastic in nature and hence the carmakers are face with making new cars. In the 1970s most of the western car makers were in the saturation stages. standardised in USA and Europe there was a demand of high motorization rate i.e. more(prenominal) car per person and hence the car manufactures had to make new products. The consumers decision to purchase a new car is based primarily on the search for a better car with more innovative solutions than ever before (Jones and Mathew, 2008, p. 384). Hence to retain the old customers and get new ones, the carmakers must rear new or better products to the customers at any time the customers decide. Car makers know that any ride out in the product innovation across the product life cycle will result in potential loss of consumer base. Whenever a car manufacturer comes out with newer car model, large manufacturers have economies of get over so that they can easily make the use of their resources and manufacture the new cars at a much reduced cost. Sometimes re launching of new car is not the only option. Car manufacturers sometimes decide to rebrand their