The Product Life Cycle Theory

1965 Words8 Pages
In the 1950s, the product life cycle theory was introduced to explain the expected life cycle of a product from design to obsolescence, a period of time divided into four stages: introduction, growth, maturity, and decline. As the world moves away from usage of oil to renewable and clean energy, it leads some to believe that oil is on its final stage of decline. However, it is important to remember that oil is more than a product, it is a natural resource making it a special case. Critics of the product life cycle theory bring up valid points. First, there is no set amount of time that a product must stay in a certain stage. Oil could remain at maturity for a significant period of time. This also means that the declining stage could be as long as the resource exists. Second, there is no real proof that all products must die. There have instances that products have gone from maturity back to a period of rapid growth thanks to some improvement. OPEC must bank on the critics being right in order to maintain its power as a cartel. TechInsider of November 5, 2015 predicts fossils fuels will be obsolete by the earliest 2050. Unfortunately, with the amount of global conflict this prediction will probably not be accurate. In terms of strategic action, OPEC needs to act swiftly and quickly as if they do not adapt they will become obsolete. Strategies they can implement are internal conflict resolution, research & development, organizational restructuring, and external negotiation.

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