Prepare a product-by-value analysis for the following products, and given the position in its life cycle, identify the issues likely to confront the operations manager, and his or her possible actions. (a) Product Alpha has annual sales of 1,500 units and a contribution of $ 3,500 per unit; it is in the introductory stage. (b) Product Bravo has annual sales of 1,000 units and a contribution of $ 3,000 per unit; it is in the growth stage. (c) Product Charlie has annual sales of 4,500 units and a contribution of $ 1,500 per unit; it is in the decline stage.

By looking at the table and given information we can see Bravo is at growing stage the life cycle of product Bravo is growth. In this stage, the product is become stable, because the customers already know about the products. Thus, by add more on quantities to accommodate the raise in product demand.

ALPHA:

For product Alpha, it is at the introduction of life cycle, so for this product, it don't have any problem to produce in a large quantity if it get the good response from customers but if the response from customer is bad or not well, produce the product in the small quantity. Because, these products are new in market, not all customers know about it and also still need some changes. Additionally in this stage, should to do more on research, product development, process modification and enhancement and supplier development. In addition, the advertising to introduce or promote this product to customer must do it well.

CHARLIE:

Product Charlie at decline stage of life cycle and know this product will be end in the certain period from now. The products are not up to date, not suitable for this era (technology era). Thus, the customers turn to the competitor products because they come out with new and fresh idea. Therefore, this product must produce in the small quantity

rowboatontario rowboatontario · Answer 2 · 2022-03-23T08:18:45+01:00

Product Alpha is at introductory stage with annual sale of 1500 units, Product Bravo is in growth stage, with 1000 units, and product Charlie is in decline stage with annual sale of 4500 units.

Possible Actions by Operation Manager

There are three different actions that can be taken by these three different Product sellers. Firstly we come to Alpha, since it is at introductory stage there are many things they can do to grow their share in market like advertisement, increasing the supply, or lowering the price per unit(it is $3500 which greater than others).

Product Bravo is at growth stage, with sells of 1000 units, at $3000 per unit, only they can do is to increase their supply as there is demand for their product. Lastly Product Charlie needs to make survey about why it is in decline, if the product lacks innovation, or the product is not sufficient to the needs of buyer, than they must work on that.

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