4 Responses 06/24ruthvik
Companies make money by selling either products or services or both in some cases. Each product or service has various steps from the time of initial idea to the time of public offering, and these steps come under the product life cycle. Every product is different and varies in the time under each phase. The product life cycle usually comes down to 4 phases: development and introduction, growth, maturity, and decline. When a product enters the market, often unbeknownst to the consumer, it has a life cycle that carries it from being new and valuable to eventually being retired out of circulation in the market. This process continually takes products from their beginning introduction stages through their decline and eventual retirement (Sraders, 2019). Nio's Battery As A Service (BaaS) is in the early stages of its offering. From 2014 when NIO was started, BaaS was always in the plan for the future of the company to separate itself from the competition. Nio is not the first company to try this service. Tesla tested battery replacement in 2013 but was unsuccessful. At the same time, NIO got its timing correct by launching the service after having a considerable number of cars on the road and gaining people's trust by producing a reliable electric vehicle. As of August 20, NIO has already obtained more than 1,200 patents related to battery swapping, built 143 Power Swap stations nationwide, and completed over 800,000 swaps for users (Nio, 2021).
The below graph shows the estimated product lifecycle of the BaaS.
Y-axis shows the battery swap number in millions.
X-axis shows the phases of the lifecycle with estimated years of each phase.
These estimates are very conservative, based on the EV future and NIO sales estimates. New energy vehicles, including electric cars, will account for 70% of China's new car sales by 2030, BYD founder Wang Chuanfu said at a conference over the weekend (Cheng, 2021).
Cheng, E. (2021, June 15). China's electric car leaders predict new energy vehicles will dominate the local market by 2030. CNBC. https://www.cnbc.com/2021/06/15/chinas-top-ev-car-makers-predict-new-energy-vehicles-will-dominate.html.
Nio. (2021, June 21). NIO Launches Battery as a Service. NIO. https://www.nio.com/news/nio-launches-battery-service.
Sraders, A. (2019, March 4). What Is the Product Life Cycle? Stages and Examples. TheStreet. https://www.thestreet.com/markets/commodities/product-life-cycle-14882534.
The Product Life Cycle (PLC) is a management tool that allows you to analyze how a product behaves from the time it is developed to the time it is removed from the market, taking into account factors such as its launch, growth, and sales maturity. In some ways, it's similar to a product journey, or, to use a more well-known example from the marketing world, the customer journey. For product and marketing teams, as well as the rest of the organization, it is critical to have a solid understanding of the product life cycle (Peter & Donnelly, 2019). Team members can use the stages to determine the level of investment that a product should receive, which products in a company's portfolio should receive the most attention and investment, and which products have the greatest potential for growth in terms of revenue and profit. Product development, sales, marketing, and other teams throughout the organization are all impacted by life cycle management in some way (De Jesus & Fajardo, 2021).
The product life cycle framework assists teams in making difficult decisions about existing products while also fostering the development of new ideas. Microsoft kicks off the support lifecycle as soon as the product is released. The Lifecycle Start Date is a celebration, often for the press. Enterprises today begin scrutinizing the new release, attempting to determine if it is suitable for the organization (Peter & Donnelly, 2019). Most companies wait for Service Pack 1 or 2 before attempting a jump. Mainstream Support begins once the ticker-tape parade has ended and the product has left the lot, and the first diaper is changed. During Mainstream Support, customers can expect full support, including paid support (per incident, per hour), security updates, and non-security hotfixes (Dieterle & Viere, 2021).
Appears to be the end of life for a Microsoft product. The period. On this day, Microsoft will begin saying its goodbyes—or, at least, it hopes it can. However, Microsoft knows its customers. Microsoft understands that many companies use Microsoft products long past the end-of-life date, and this may take some time to do. To ensure customers have support for expired products, Microsoft extends support. During this time, support is decreased However, there are a limited number of support options available. Microsoft announces a hard deadline for ending support for a product. This is the final and terminal date for the product, where customers are expected to be migrated to a newer product (He & Yu, 2021).
I am making this assessment to understand the life cycle phases of the Microsoft products as they are being widely used by people in their daily lives. The customers are dependent on the services of the company and ensures that their productivity is maintained by using its tools and techniques. Microsoft saves a lot of time of the customers by offering various solutions that can be easily applied to daily lives. This assessment reflects that Microsoft have been maintaining its products in the market at the maturing phase and there are products that reach the declination phase but an option is always ready with the company to meet the customer requirements.
De Jesus, F. S., & Fajardo, L. M. L. (2021). The Product Life Cycle of Milk Tea: An Assessment. Interdisciplinary Journal of Applied and Basic Subjects, 1(2), 76-87.
Dieterle, M., & Viere, T. (2021). Bridging product life cycle gaps in LCA & LCC towards a circular economy. Procedia CIRP, 98, 354-357.
He, B., & Yu, Q. (2021). Product sustainable design for carbon footprint during product life cycle. Journal of Engineering Design, 1-18.
Peter, J. P., & Donnelly, Jr., J. H. (2019). A preface to marketing management (15th ed.). Columbus, OH: Irwin/McGraw-Hill.
Introduction 2014-2020 Growth 2020-2035 Maturity 2035-2045 Decline 2040- 0 0.8 5 7 5 Column1
Introduction 2014-2020 Growth 2020-2035 Maturity 2035-2045 Decline 2040-
Battery Swaps in Millions