Importance of patterns for managing companies, study of the product life cycle

Résumé du document

The best way to manage a company is to be competitive. The competition is growing due to the globalization, which has caused the arrival of so many new emerging markets such as China.

This is why companies are looking for an efficient management for both staff and marketing mix in order to be successful. It also involves that marketing managers need to understand how markets develop over time according to social and political changes as well as technological trends in order better to plan and to manage products, their lifecycles and their marketing strategies.

Three components are involved in market evolution: The way in which customers adopt new products, the evolution and acceptance of technology and, finally, the impact of competition. Consequently, it appears very useful to explain what I mean by the word "strategic" even if everyone can give his own definition.

In my opinion, strategy is a plan of action which is made in order to achieve a specific goal in the long term without to forget to take in consideration the environment of the company and to know exactly what are the resources that you have at your disposal.

Despite markets keep evaluating, senior executives still make use of different famous pattern which are very important for their decision-making and to drive a company with success.

Extraits

[...] It was the case for Dasani, the brand of the Coca Cola Company which is bottle of water. Indeed, the PESTEL model gave to Coca Cola the reason why the product was not successful on the English market. In this way, it was very useful to use this model to find appropriated decisions in order to quickly react. Once again it shows the contribution of model for decision-making. The swot which determines the strengths and weaknesses of the company but also the opportunities and the threats of the market is, in the same case, a very useful tool to show if a company is able to be successful on a market. [...]

[...] It can happen that there is an important change on the market after the introduction of the product. Indeed, the manager has to find an issue to resolve the problem and can have the possibility to adopt a most appropriate strategy. For example, even if the market has been analysed before, a competitor can launch a similar product at the same time. It could be harmful to the company to have a lack of ability to react and very costly. [...]

[...] Importance of patterns for managing companies, study of the product life cycle Content Introduction The use of models in strategic management Definition of a model What is strategic management? Challenge for senior executives Influence of models for senior executive's decision-making Description of the Product Life Cycle Evaluation of the Product Life Cycle Strengths Weaknesses and Limitations Conclusion Appendix References Introduction Nowadays, the way how to manage a company is essential to be competitive. Indeed, there is more and more competition due to the globalisation which has caused the arrival of so many new emerging markets such as China. [...]

[...] It is of importance to underline a criticism about the oldness of the model because it seems to be an important factor. Indeed, nowadays markets and consumer's behaviours have changed. The main change of market is clearly due to the globalization which is a relatively new phenomenon. Markets are reached by product from all over the world even if developed countries are still in charge of the innovation. But new emerging economies such as China are very competitive and it is very difficult to predict if equivalent product will compete with a new product. [...]

[...] Indeed, after the arrival of the Peugeot has stopped to produce it whereas it was a real success. The brand has anticipated the decline of the product but they were wrong. That shows that stages do not always have the same duration. Moreover, F.Brassington and S.Pettitt agree on the fact that the Product Life Cycle is too general. They mean that some products can meet with difficulties during one stage and, for this reason; the product will not be able to keep following the direction of the PLC. [...]