Relationship between the product life cycle, investment, profit and cash flow Introduction product launched on the market •New level of sales •Low utilisation •Low capacity costs - teething problems occur •High unit negative cash flow •Usually may be reluctant to take an unproven product •Distributors promotion to make consumers aware of the product •Heavy Growth Expanding market but arrival of competitors growing sales •Fast in capacity utilisation •Rise market acceptance •Product gains flow may become positive •Cash
Relationship between the product life cycle, investment, profit and cash flow Introduction •New product launched on the market •Low level of sales •Low capacity utilisation •High unit costs - teething problems occur •Usually negative cash flow •Distributors may be reluctant to take an unproven product •Heavy promotion to make consumers aware of the product Growth Expanding market but arrival of competitors •Fast growing sales •Rise in capacity utilisation •Product gains market acceptance •Cash flow may become positive
4.3._product_additional_information_and_qs.docx