An Empirical Investigation of Success Strategies for Businesses Along the Product Life Cycle
AbstractSince the introduction of the concept of the product life cycle (PLC) some decades ago a great deal has been written on the subject and several empirical studies have been conducted. However, empirical research to date is often limited in scope. It is oriented towards the analysis of the growth and saturation stages and focused primarily on the study of consumer goods. Furthermore, the application of the PLC concept in strategic planning is largely disappointing, the normative orientation of most of this literature being somewhat naive and misleading. The aim of the present research is to study the efficiency of different strategies for achieving market share and cash flow objectives. This study is performed on different types of businesses producing both consumer and industrial products situated at various stages on the product life cycle: growth, maturity and decline. A sample of approximately 1,100 businesses (217 in the growth stage, 315 in the maturity stage, 569 in the decline stage) is drawn from the PIMS data base. A cluster analysis is run to identify natural groups of homogeneous businesses. For each of the nine identified groups, linear regression models are estimated to study the influence of strategic actions---finance, marketings, production, R&D, personnel---on two criteria of performance: market share and cash flow. The research indicates that strategies not only depend on the life cycle stage but also are influenced by the goal orientation of the firm---short-term (cash-flow) or long-term (market share)---and that success strategies appear to be contingent upon the business and the environmental characteristics.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 30 (1984)
Issue (Month): 12 (December)
organizational life cycle; corporate strategy; product life cycle;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Covin, Jeffrey G. & Slevin, Dennis P. & Heeley, Michael B., 2000. "Pioneers and followers: Competitive tactics, environment, and firm growth," Journal of Business Venturing, Elsevier, vol. 15(2), pages 175-210, March.
- Natália Barbosa & Ana Paula Faria & Vasco Eiriz, 2013. "Industry - and firm-specific factors of innovation novelty," NIPE Working Papers 10/2013, NIPE - Universidade do Minho.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.