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Introduction Stage
Because the product-development stage of the PLC was observed at the starting of the chapter, to explore in more detail the first stage at this point is the introduction stage. This stage is while the product is new and first distributed and made available for buying.
a. Profits are low or negative in this stage because of the low sales and high distribution expenses.
b. Prices tend to be on the high side because of production problems, low output, high promotion, and other cost.
c. Usually there are few competitors.
d. The focus is on purchaser who is the most ready to buy.
e. The market pioneer ought to launch its product with a plan that is consistent with a long-term focus on the market instead of a quick profit gain. Retaining market leadership can be complicated, but it is desirable.
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As the opening vignette indicates, The Mayo clinic has been built as one of the most powerful services brands on its firmly held belief and focus on the experience of the patient.
CREATING STRATEGIC ADVANTAGE
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