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| + | Technology life cycle |
| − | <img src="/static/files/MBI/Module%205/technologylifecycle.png" width = 400 />
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| − | # Fluid
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| − | ## In the fluid phase there is a great deal of product and [[Market uncertainty|Market uncertainty]].
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| − | ## Firms are not quite sure what should go into the product.
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| − | ## Customers too may not know what they want in the product.
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| − | ## There is competition between the new and old technologies as well as between different designs using the new technology.
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| − | ## Product quality is low
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| − | ## Cost and prices are high, economies of scale and learning have yet to set in.
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| − | ## Market penetration is low and customers are largely lead users
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| − | # Growth or Transitional
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| − | ## The transitional phase sets in when some standardization of components, market needs, and product design features takes place
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| − | ## A standard or common framework for offering products or services emerges signaling a substantial reduction in uncertainty, experimentation, and major changes.
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| − | ## The customer base increases from lead and high-income users to mass market during the growth phase.
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| − | ## Many firms find out that they do not have what it takes to compete
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| − | ## The number of entries decreases drastically while the number of exits increases tremendously.
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| − | # Stable
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| − | ## In the stable phase (or mature phase), products built around the common framework or standard proliferate.
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| − | ## Products are highly defined with differences fewer than similarities between competing products.
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| − | ## Demand growth slows considerably with most output earmarked to satisfy replacement needs.
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| − | ## The total number of firms in each industry decreases considerably from the peak of the growth phase.
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| − | ## In this phase, a firm’s strategies focus on defending its position and watching out for the next technological change that could start the life cycle over again.
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| | [[Category:mbi]] | | [[Category:mbi]] |
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