ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Not all businesses will experience every stage of the business lifecycle, and those that do may not necessarily experience them in chronological order. For example, some businesses may see astronomical growth right after startup, and the founders may decide to cash out right away, jumping straight to that “exit” stage.

Detailed explanation-2: -What is the Business Life Cycle? The business life cycle is the progression of a business in phases over time and is most commonly divided into five stages: launch, growth, shake-out, maturity, and decline.

Detailed explanation-3: -Products enter the decline stage when consumer appeal and sales drift downward. This happens every day: consumers get bored, markets are oversaturated, or a newer, better product is introduced that eclipses its predecessors. It’s important to remember that not every product will necessarily face a decline stage.

Detailed explanation-4: -While all products have a life cycle, many of the most successful ones are able to maintain the mature stage of the life cycle for many years before any eventual decline.

Detailed explanation-5: -During the maturity stage of the product life cycle, the sharp growth in sales begins to slow, and profits at the beginning of this stage decline.