Question

Explain the abandonment stage of the product life cycle.

Answer 1

1. Most firms shift their attention to other products, gradually phasing out the declining product. They abandon the product in order to make better use of their resources.
2. Preferences of consumers may change and new innovations enter the market to take the place of the abandoned products.
3. Some firms try to postpone abandonment by introducing new models with unique features. In case of heavy losses and no future, the firm may sell out and merge with a stronger enterprise.