Review Paper - Study on Product Life Cycle of Netflix

Abstract

The product life cycle (PLC) is a theoretical framework that delineates the stages a product traverses throughout its existence in the market. The concept encapsulates four principal phases: introduction, growth, maturity, and decline. During the introduction stage, a product is launched, initial sales are modest, and companies typically invest heavily in marketing and distribution. As the product gains traction, it enters the growth phase, marked by exponential sales growth, intensified competition, and rising profitability. Subsequently, the product transitions into the maturity stage, characterized by a plateau in sales growth, increased competition, and a focus on differentiation strategies. Finally, the decline stage ensues, where sales decline due to market saturation, changing consumer preferences, or technological advancements. Companies may opt to discontinue the product or pursue rejuvenation efforts to prolong its lifespan. Understanding the product life cycle aids businesses in formulating effective strategies for product development, marketing, pricing, and resource allocation across its lifecycle stages.