Product Lifecycle, Essay Example

Information Technology Product Lifecycle

Brand Extensions

According to Jaulent (2007), there are advantages and disadvantages of brand extension strategies. In the case of Apple, brand extension was necessary, due to technological developments, and it transformed the organization from a small computer manufacturer into the owner of the leading smart-phone brand. Taking into consideration that “brand name is a key-element leading the consumer to buy”  Jaulent, 2007, p. 4), in the case of brands that have a strong loyal customer base, brand extension can be a good decision. However, Azfal (2013) lists the factors that influence the success of brand extensions, such as: brand reputation, perceived risk, consumer initiatives, and perceived similarity. Overall, if there is an existing demand on the market, the company already has a loyal customer base, the new market is similar to the existing one, and the barriers to enter the new market are low – just like in the case of Apple -, and the new product can be easily differentiated, brand extensions can lead to innovation and growth of companies.

Product Lifecycles

In today’s fast developing world, technologies have their own life-cycles, just like individual products. Reisinger’s (2011) article reveals that the Selectric typewriter enjoyed 25 years of success, however, today’s information technology products have a much shorter life-cycle. Not many people use a Commodore 64 computer these days, or listen to music on an LP. Simply because technological innovation brought forward better, smaller, more powerful products. Therefore, it is evident that technology-based products have finite lives, due to the fact that the main driver of the industry is innovation.

Komninos (2002) revealed that market conditions, such as competition, innovation, and customer demand determine the life-cycle of technology products, therefore, planning ahead has become problematic for companies. As the author (Komninos, 2002, p. 16) confirms: “As a new technology matures so is the product or service that uses this technology. The change that occurs during a technology life cycle has a unique reflection on the customers and so on the product life cycle”.

References

Afzal, S. (2013). Factors Influencing Successful Brand Extension into Related and Unrelated Product Categories. Asian Economic and Financial Review, 3(2), 216-226.

Jaulent, S. (2007). Advantages and disadvantages of brand extension strategy for companies. C-level dissertation in Marketing

Komninos, I. (2002). Product life cycle management. Innovation, 1-27.

Reisinger, D.  (2011) IBM celebrates 50 years with the Selectric typewriter. Cnet. 27 July 2011