When competition enters, the focus is on both customers and competitors. Customers value is still important but, as discussed earlier in this chapter, how competitiors will react is also addressed. Finally, in the late stages of the product category, the focus shifts toward competitors and costs to determine whether remaining in the market makes economic sense. There profitability analysis is the key.
Another way to look at the lift cycle impact is through experience curve pricing Product managers have flexibility in pricing decisions when the product tends to adhere to the experience curve. Figure 10.11 show three different pricing scenarios. Increases in industry cumulative volume represent movement along the product life cycle. One possible pricing pattern, C, acknowledges little competition and assumes increased customer value through consistent lowering of prices over time. In pattern B, the product manager