A modified product life cycle becomes a useful basis for a new product-service strategy model

Abstract

The recent financial problems of the 2008/10 GFC and the likelihood of similar events occurring in 2012/13 has ‘spooked’ business and consumer confidence and has resulted in fierce competition in both B2C and in the derived demand companies in B2B markets. The problems are exacerbated by the very slow recovery response of developed economy business organisations, many facing competition from Asian companies whose business models have become sophisticated and are moving rapidly away from their traditional “high volume/low value” manufacturing expertise towards a “low volume/high value” value proposition thereby threatening well established traditional western companies; some are moving away from tangible/hardware products towards becoming solution providers.