BUSSPP 0020 1st Edition Lecture 12 Outline of Last Lecture I Branding II Life Cycle of a Product Outline of Current Lecture I Product Life Cycle cont Current Lecture I Product Life Cycle A Mature Vol Rev constant to decreasing demand shrinking profit opportunities toward oligopoly during maturity Time B Detail First Mover First Mover Advantages Location Key input element Distribution First Mover Disadvantages Incur full value of production development What do you do if you re a 2nd mover Licensing increases your costs C Types of second movers 1 Fast a Sit back hop in quickly when success is apparent 2 Slow a We re not the best we ll watch this develop for a while These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute b very low risk of failure D Strategies of Second Movers 1 Advantages of the second mover are much like the disadvantages of the 1st mover and vice versa 2 Cloning Price a something the first mover has done is easily reproducible i No intellectual property copyright b copy at a lower price 3 Leap Frogging a sees a first mover acquires product improves product 4 Capacity a Waiting until most of what the target market wants is well understood b either keeps price at a medium level or increases it E Price Leapfrogging slows down disappears 1 Demand up Price up 2 Scarcity of capacity up Price up 3 Leapfrog price up 4 Cloning Price down 5 New entries increased capacity price down
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