Product Life Cycle – Decline
In the decline phase our rate of growth is now negative sloping. We no longer are garnering more customers and market share but are losing both. We still may be able to eke out a profit, but we will have to work especially hard doing so. If we were forward thinking, we likely have a replacement new and better “widget” that will restart the entire process all over again. We will likely maintain some replacement parts for the product already sold but our manufacturing processes will ramp down. If we did not believe we could produce a new widget that meets the customer demands or needs, we may ultimately discontinue this sort of product and the associated production line. We may choose to outsource the product to a lower cost country in an attempt to gain more time with this product.