Product Life Cycle

A company's positioning and differentiation strategy must change as the product, market, and competitors change over the product life cycle (Kotler & Keller, Marketing Management, 14E). This simply means that the company's objectives and strategies will be on a constant change due to the limitation of the product's life cycle in order to prolong the life of the products to ensure sustainability in the market and in this current era.

As for the Digital Compact camera business, it is crucial for the company to be able to have the flexibility and the urgency to change its business course of action during each stage of the product life cycle in order to capture the opportunities at every possible chance available to increase the sales of the products and to create awareness to prolong the products' visibility in the mass market.

Due to the ever changing environment, a research has been done in the United States on the Digital Compact Camera which is at the lower end range and the numbers is seen declining significantly since the introduction of smartphones (NPD Group Press Release, December 2011). Many consumers are now equipped with smartphones which has cameras embedded with improved features that take quality photos. Convenience has been the main focus and concern for the consumers which they need not bring a separate camera which is twice as heavy as their smartphones, plus, the function available on the smartphones are significantly much more than the normal cameras available now which have been installed with other softwares.