Detailed Analysis of the Decline Phase in the Innovation Life Cycle

This report analyzes the decline phase of the innovation life cycle, examining the factors that contribute to declining demand and sales. It explores the transitional shakeout, identifying which entities leave the market and the causes behind the sales decline, such as a lack of innovation and strategic planning. The report also investigates how established brands respond to market changes, whether they cut production or switch to new product lines, and whether opportunities in emerging economies were pursued. The conclusion emphasizes the importance of adapting to declining demand and the need for businesses to continuously innovate to maintain a competitive edge. The report references several academic sources to support its findings.

Innovation life cycle

Contents
Innovation life cycle................................................................................................................................1
Question 4 Decline phase........................................................................................................................3
When and at what point the decline in demand does emerge?.................................................................3
In terms of transitional shake out, who left the market?..........................................................................3
What was the cause of decline of sales?..................................................................................................3
How established brands respond in the market?......................................................................................4
Was production cut or switched to new product line?.............................................................................4
Had the product or innovation’s utility ended, or were opportunities in emerging economies not
followed up?............................................................................................................................................4
CONCLUSION...........................................................................................................................................4
REFERENCES............................................................................................................................................5

Question 4 Decline phase
When and at what point the decline in demand does emerge?
With the attaining of the maturity phase in the innovation cycle, the demand of the
product decreases. It indicates that the company has to either reinvented the innovation process
and product or has to come up with another, more innovative and cost effective product that will
help the organization to have a better handling of business operations and meet the requirements
of its customers. The failure of incorporating the new innovation and inefficiency of coming up
with better and interactive ideas can lay a very devastating and negative impact on the operations
of company. Thus, it is very necessary for the growth and development of the company that will
help the organization to maintain its better and strategic position in market (DAILY, KIEFF and
WILMARTH JR, 2014). Apart from this, at this level, the company must take in consideration, the
needs and demands of their customers.
In terms of transitional shake out, who left the market?
With the transitional shake out the investors and the core stake holders of the firm will
move out from the market. The transitional shake out is the phase of consolidation of the market
or business entities in the market. This is done to save the financial and other vital resources that
are been implemented in the development of the innovative product or services this will help in
better handling of the operations that will help in effective rise in the operational capacity of
firm. The investors leave the market after the maturity and decline in order to control the losses
and have a good sustainability for the business firm. The shakeout is required to be handled with
effective consideration as this involves the vital resources that is been put in stack for the

achievement of the targeted goals through development of strategic and innovative products and
services for the customers. But when the business organization fails to gain the desired revenue
and profit, investors and stake holders back off from the market.
What was the cause of decline of sales?
The major cause of decline of sales was the lack of innovation and proper strategic planning was
the major cause of the decline of sales and the reduction of the customer base of the organization.
The inability of making the innovation even after the product reaching the maturity level is the
major factor that has caused the failure of the business operations in a significant manner. The
business organization has to look after the effective handling of the wide range of operations that
will help the cited trade firm to come up with more innovative and effective products that will
help the firm to handle the business operations (Christensen, Raynor and McDonald, 2016). The
ineffectiveness of business entity to analyze its customer’s requirement and develop better
product or services is the primary reason of reduction in selling of products and services. Besides
this, the availability of better quality of product on the nominal cost in the same market is also
the main reason in effective decrement in the demands of the product, decreased demands and
decline of sales.
How established brands respond in the market?
With the decreased demand and reduced revenue generation, the established firm in the
market had developed a better and crucial role in the effective rise in the operational handling of
business operations that will help in the better management of the wide range of innovative
business operations. With the increase in the complexity to sell the product after the maturity
level is the major challenge that is been faced by the business organization that will lay a very
deep and significant impact on the overall operations of their respective business entity. With the
rise in competition and handling of wide range of customer’s needs and demands will lay a
significant impact on the wide range of business operations. Other than this, it will also help in
increase in productivity and profitability of cited business firm (Tukker and et.al., 2017). Other
than this, the development of high level of business strategy is the major factor that drives the
established firm to work more effectively and in a better way. These approaches of brands have
evolved as the major reason for their effective growth and development.
Was production cut or switched to new product line?
After the maturity is been identified, the cited firm will work in an effective manner to
opt for the better and innovative products and services that will help in the better management of
high level of business solutions to meet the issue of decline of sales. This is to be taken in
effective consideration by the business organization in order to handle the wide range of business
operations that will help in meeting the needs and demands of their customers in a much better
and significant manner. The production was not cut, although a reduction in it is been observed.
Besides this, the company has worked for the effective handling of wide range of business firm
that help the firm to have a better and innovative product line to meet the satisfaction level of
customer(Ha.and et.al., 2015.).

Had the product or innovation’s utility ended, or were opportunities in emerging
economies not followed up?
With the better development of the innovative approaches that are been taken in effective
consideration by the organization, various effective approaches are been taken in consideration
by the business organization that help in the better handling of innovation purposes to meet the
needs and demands of the customers. Apart from this, with the rise in the overall economic
conditions in nation, a new path is ben paved for the effective growth and development of the
firm (Kleinknecht, 2016).
CONCLUSION
Thus, it can be concluded that the declining of the needs and demands lay a very crucial
and effective impact on the operations of cited business firm. The organization has to look after
the better handling of wide range of business operations that will help the business operations to
run a wide range of business operations related to the maturity of a innovative product or service.

REFERENCES
Books and journals
DAILY, J.E., KIEFF, F.S. and WILMARTH JR, A.E., 2014. Introduction. In Perspectives on Financing
Innovation (pp. 13-16). Routledge.
Christensen, C.M., Raynor, M.E. and McDonald, R., 2016. What is disruptive Innovation. The
Encyclopedia of Human-Computer Interaction. 2.
Tukker, A. and et.al., 2017. System innovation for sustainability 1: Perspectives on radical changes to
sustainable consumption and production. Routledge.
Han, B.and et.al., 2015. Network function virtualization: Challenges and opportunities for
innovations. IEEE Communications Magazine. 53(2). pp.90-97.
Kleinknecht, A., 2016. Innovation patterns in crisis and prosperity: Schumpeter’s long cycle reconsidered.
Springer.