Forecasting

Explain what benefits of proper forecasting provide for a company. What would happen if a company chose not to forecast?

Product Life Cycle

Explain each of the 4 stages of the product life cycle and provide an example of a product category for each of the product life cycle stages.

On Chapter 5s PPT Slide 13, figure 5.2 shows a profit/loss chart as it goes through a full product life cycle.

• Why does a product life cycle start by operating at a loss?
• At what stage is the product most profitable for a company? Why do you think that is?
• Competitors more formally enter the market at the Maturity stage in the product life cycle what effects does that have on the category as a whole? Is there anything a company can do to try and stay ahead of the competition?