Difference between revisions of "Product Life Cycle Examples"

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'''Major takeaway points:''' United States cola production, both in the aggregate and per capita experienced a century long introduction and growth phase. The 21st century witnesses the onset of the product moving into the decline phase.
 
'''Major takeaway points:''' United States cola production, both in the aggregate and per capita experienced a century long introduction and growth phase. The 21st century witnesses the onset of the product moving into the decline phase.
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{| {{table}}
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| align="center" style="background:#f0f0f0;"|'''Year'''
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| align="center" style="background:#f0f0f0;"|'''US Coal Production (in millions of short tons)'''
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| align="center" style="background:#f0f0f0;"|'''United States Population (in millions)'''
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| align="center" style="background:#f0f0f0;"|'''Coal Production / US Population'''
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|-
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| 1850||8.4||23.2||0.36
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|-
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| 1870||40||38.6||1.04
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|-
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| 1900||270||76.2||3.54
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|-
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| 1918||680||103.2||6.59
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|-
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| 1932||360||124.8||2.88
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|-
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| 1949||480.6||149.2||3.22
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|-
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| 1950||560.4||152.3||3.68
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|-
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| 1951||576.3||154.9||3.72
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|-
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| 1952||507.4||157.6||3.22
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|-
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| 1953||488.2||160.2||3.05
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|-
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| 1954||420.8||163.0||2.58
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|-
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| 1955||490.8||165.9||2.96
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|-
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| 1956||529.8||168.9||3.14
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|-
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| 1957||518.0||172.0||3.01
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|-
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| 1958||431.6||174.9||2.47
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|-
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| 1959||432.7||177.8||2.43
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|-
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| 1960||434.3||180.7||2.40
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|-
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| 1961||420.4||183.7||2.29
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|-
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| 1962||439.0||186.5||2.35
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|-
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| 1963||477.2||189.2||2.52
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|-
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| 1964||504.2||191.9||2.63
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|-
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| 1965||527.0||194.3||2.71
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|-
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| 1966||546.8||196.6||2.78
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|-
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| 1967||564.9||198.7||2.84
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|-
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| 1968||556.7||200.7||2.77
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|-
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| 1969||571.0||202.7||2.82
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|-
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| 1970||612.7||205.1||2.99
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|-
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| 1971||560.9||207.7||2.70
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|-
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| 1972||602.5||209.9||2.87
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|-
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| 1973||598.6||211.9||2.82
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|-
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| 1974||610.0||213.9||2.85
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|-
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| 1975||654.6||216.0||3.03
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|-
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| 1976||684.9||218.0||3.14
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|-
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| 1977||697.2||220.2||3.17
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|-
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| 1978||670.2||222.6||3.01
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|-
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| 1979||781.1||225.1||3.47
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|-
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| 1980||829.7||227.2||3.65
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|-
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| 1981||823.8||229.5||3.59
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|-
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| 1982||838.1||231.7||3.62
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|-
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| 1983||782.1||233.8||3.35
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|-
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| 1984||895.9||235.8||3.80
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|-
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| 1985||883.6||237.9||3.71
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|-
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| 1986||890.3||240.1||3.71
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|-
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| 1987||918.8||242.3||3.79
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|-
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| 1988||950.3||244.5||3.89
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|-
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| 1989||980.7||246.8||3.97
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|-
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| 1990||1,029.1||249.4||4.13
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|-
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| 1991||996.0||252.1||3.95
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|-
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| 1992||997.5||255.0||3.91
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|-
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| 1993||945.4||257.7||3.67
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|-
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| 1994||1,033.5||260.3||3.97
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|-
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| 1995||1,033.0||262.8||3.93
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|-
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| 1996||1,063.9||265.2||4.01
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|-
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| 1997||1,089.9||267.7||4.07
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|-
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| 1998||1,117.5||270.3||4.13
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|-
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| 1999||1,100.4||272.7||4.04
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|-
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| 2000||1,073.6||282.2||3.80
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|-
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| 2001||1,127.7||285.1||3.96
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|-
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| 2002||1,094.3||287.8||3.80
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|-
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| 2003||1,071.8||290.3||3.69
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|-
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| 2004||1,112.1||293.0||3.79
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|-
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| 2005||1,131.5||295.8||3.83
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|-
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| 2006||1,162.7||298.6||3.89
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|-
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| 2007||1,146.6||301.6||3.80
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|-
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| 2008||1,171.8||304.4||3.85
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|-
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| 2009||1,074.9||307.0||3.50
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|-
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| 2010||1,084.4||310.2||3.50
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|-
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| 2011||1,094.3||311.6||3.51
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|-
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| 2012||1,061.4||313.8||3.38
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|-
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| 2013||984.8||316.2||3.11
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|-
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| 2014||1,000.0||319.1||3.13
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|-
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| 2015||896.9||321.4||2.79
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|-
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| 2016||728.4||322.2||2.26
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|-
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| 2017||774.6||324.5||2.39
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|-
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|
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|}

Revision as of 20:34, 28 February 2019

The standard product life cycle depiction is idealized vision and is not always observed in practice. Here we will examine several examples and tie the industry back to change in the environment and the strategic options for the firm.

Example 1: United States Coal Production (in the decline phase since about 2000)

Charts 1 and 2 respectively show United States coal production (in millions of short tons) and in millions of short per capita. These charts show long run production from 1850 through 2017. Data is not available for all years. Examining two charts, especially the per capita chart, allow us to disentangle product revenue or unit growth numbers from population growth. Both charts present a similar pattern. Coal production exhibited growth from 1850 through the end of the 20th century. The 21st century shows a decline in United States coal production. Simple liner regression models were constructed to identify trends. These models are not forecasting models. Separate model for 1850 – 1950 and the 1951 – 1999 periods indicate significant growth in United States coal production. The per capita model for 1850 – 1950 does not show significant growth. Both of the models for the 2000 – 2017 time period show a significant decline show in the United States coal production. Short ton production of coal if declined by 17.224 million tons per year.



Major takeaway points: United States cola production, both in the aggregate and per capita experienced a century long introduction and growth phase. The 21st century witnesses the onset of the product moving into the decline phase.


Year US Coal Production (in millions of short tons) United States Population (in millions) Coal Production / US Population
1850 8.4 23.2 0.36
1870 40 38.6 1.04
1900 270 76.2 3.54
1918 680 103.2 6.59
1932 360 124.8 2.88
1949 480.6 149.2 3.22
1950 560.4 152.3 3.68
1951 576.3 154.9 3.72
1952 507.4 157.6 3.22
1953 488.2 160.2 3.05
1954 420.8 163.0 2.58
1955 490.8 165.9 2.96
1956 529.8 168.9 3.14
1957 518.0 172.0 3.01
1958 431.6 174.9 2.47
1959 432.7 177.8 2.43
1960 434.3 180.7 2.40
1961 420.4 183.7 2.29
1962 439.0 186.5 2.35
1963 477.2 189.2 2.52
1964 504.2 191.9 2.63
1965 527.0 194.3 2.71
1966 546.8 196.6 2.78
1967 564.9 198.7 2.84
1968 556.7 200.7 2.77
1969 571.0 202.7 2.82
1970 612.7 205.1 2.99
1971 560.9 207.7 2.70
1972 602.5 209.9 2.87
1973 598.6 211.9 2.82
1974 610.0 213.9 2.85
1975 654.6 216.0 3.03
1976 684.9 218.0 3.14
1977 697.2 220.2 3.17
1978 670.2 222.6 3.01
1979 781.1 225.1 3.47
1980 829.7 227.2 3.65
1981 823.8 229.5 3.59
1982 838.1 231.7 3.62
1983 782.1 233.8 3.35
1984 895.9 235.8 3.80
1985 883.6 237.9 3.71
1986 890.3 240.1 3.71
1987 918.8 242.3 3.79
1988 950.3 244.5 3.89
1989 980.7 246.8 3.97
1990 1,029.1 249.4 4.13
1991 996.0 252.1 3.95
1992 997.5 255.0 3.91
1993 945.4 257.7 3.67
1994 1,033.5 260.3 3.97
1995 1,033.0 262.8 3.93
1996 1,063.9 265.2 4.01
1997 1,089.9 267.7 4.07
1998 1,117.5 270.3 4.13
1999 1,100.4 272.7 4.04
2000 1,073.6 282.2 3.80
2001 1,127.7 285.1 3.96
2002 1,094.3 287.8 3.80
2003 1,071.8 290.3 3.69
2004 1,112.1 293.0 3.79
2005 1,131.5 295.8 3.83
2006 1,162.7 298.6 3.89
2007 1,146.6 301.6 3.80
2008 1,171.8 304.4 3.85
2009 1,074.9 307.0 3.50
2010 1,084.4 310.2 3.50
2011 1,094.3 311.6 3.51
2012 1,061.4 313.8 3.38
2013 984.8 316.2 3.11
2014 1,000.0 319.1 3.13
2015 896.9 321.4 2.79
2016 728.4 322.2 2.26
2017 774.6 324.5 2.39
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