Question

If the company’s sales is slowing down, and profits level is also off. At which stage the company has reached?

Answer 1

Answer:

Decline (and death): When sales and profits fall, the product has reached the decline stage. The rate of decline is governed by two factors: the rate of change in consumer tastes and the rate at which new products enter the market.

Answer 2

If the company’s sales is slowing down, and profits level is also off. The company has reached at Decline stage.

Definition of decline stage

• The decline phase denotes the end of an industry's capacity to maintain expansion.
• Obsolescence and shifting end markets reduce demand, resulting in decreased revenues.
• This puts pressure on margins, driving weaker competitors out of the business.

Example

• Sony VCRs are an example of a declining product.
• VCR demand has now been surpassed by demand for DVDs and online content streaming.
• Companies can sometimes improve a product by making changes to it, such as adding new ingredients or offering new services.

Decline phase denotes the end of an industry's capacity to maintain expansion.