Conglomerate Diversification - The acquisition or internal development of a business outside of, and in no way related to a company s existing scope of operations. Divestiture - The sale of a business or significant part of the business as a going concern. Liquidation - The sale of a business s assets, not as a going concern. Introduction - Market awareness of the product is limited and sales volumes are low. Investment in advertising and promotion is required in order to stimulate consumer awareness and product trial, and profitability is low or negative as a result.
Prices are usually high and consumption is dominated by early adopters .
Growth - Awareness of the product increases and consumption shifts from early adopters to mass market. Sales growth increases although profitability may be reduced by the investment required to scale up production and retain customers. Maturity - Sales plateau and profit margins are reduced. Competition shifts to production efficiency in order to maintain profitability. Mass market consumers establish consumption patterns, and competitive rivalry intensifies as companies fight for customer loyalty and satisfaction.