I Dont Know

700 Words3 Pages
1. What stage of the Product Life Cycle are Jim’s Levels? Explain why. I think the Decline Stage of Product Life Cycle is Jim`s Level. The Decline Stage has some characteristic: 1 Sales drop because a new innovation has been developed 2 Technology has a major influence at the intro and decline stages 3 Sales slow to disappear, consumers hold on the old ways. In the third paragraph of case, Jim has noticed his sales falling because a new innovation has been developed that is laser level. Laser levels are shorter and easier to carry than Jim`s level, and laser level can extend for over 100 feet but Jim`s levels just 4 to 6 feet for bricklayers. Most worker hold on old methods.…show more content…
4. Should Jim move into the new technology and divest his current products? I don’t think Jim divest his current products but he can move into the new technology. Jim is not sure whether the new product will enhance or degrade his product lines and he also not sure the investment. So I think he should do a market survey first then make decision according to survey. He cannot give up his current products because his current product is a more reliable and steady source of income. But he should move into the new technology because he at Decline stage now, so he should think about extend his life cycle and develop his business field. He must observe market tendency and make his business diversified and creative. 5. What other factors should he consider? What is his Porter Strategy? Jim should consider the cost, market demand and substitute goods. For cost, with more advanced equipment, Jim need consider the cost about his products. Although there are not many manufacturers same with Jim, he also need to get the opportunity to compete with others manufacturers. Market demand and substitute goods, with the development of market, more substitute goods will appear in market, so Jim should pay attention to these substitute goods with his products. Because substitute goods will lead his sales decrease and steal his clients. So he should prevent crises before they emerge, and do more
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