After a period of stable growth, th

After a period of stable growth, the revenue generated from sales of the product starts dipping due to market saturation, stiff competition and latest technological developments. The consumer loses interest in the product and begins to seek other options. This stage is characterized by shrinking market share, dwindling product popularity and plummeting profits. This stage is a very delicate stage and needs to be handled wisely. The type of response contributes to the future of the product. The company needs to take special efforts to raise the product's popularity in the market once again, either by reducing the cost of the product, tapping new markets or withdrawing the product from the market. The manufacturer will cut down all non-profit distribution channels and continue focusing on improving the product design and features, so as to gain back the lost customer base. However, if this strategy fails, the manufacturer will have no option, but to withdraw the product from the market.
Read more at Buzzle: http://www.buzzle.com/articles/product-life-cycle-theory.html