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If product in emerging growth stage ...
... focus on R&D, competition, and pricing
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If product in growth stage ...
... focus on marketing and competition
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If product in mature stage ...
... focus on manufacturing, costs, and competition
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If product in declining stage ...
... define niche strategy, analyze competition, and/or think exit strategy
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If you lower prices and volume rises and you are pushed beyond full capacity then ...
... costs will rise (i.e. labor) and profits will decline
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If sales and market share are increasing but profits are declining then ...
... look into prices and costs
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If sales and market share are flat then it could mean ...
... industry sales are flat (and competitors having same experience)
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Elements of COGS
Direct labor, direct material costs, overhead, delivery costs
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Gross margin less x and y = Operating margin
SG&A, Depreciation
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Examples of fixed costs
Fixed costs don't change month to month: rent, insurance premium, loan payment, equipment lease, admin./tech. support
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Examples of variable costs
Variable costs do change month to month and depend on volume: raw materials, hourly labor, incremental power/fuel, office supplies
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