Company Analysis
McDonald’s is one of the companies which has changed its logo overtime. The logo was changed to incorporate the need for customers to maintain social distancing amid the COVID-19 outbreak. It was an initiative that the McDonald’s took to sensitize its customers on the need and importance of social distancing globally and within its premises at the brink of COVID-19 (Kim & Lim, 2019). Communication is a fundamental strategy for any organization, companies use a different mechanism of passing information to their customers. However, McDonald’s changed its logo and incorporated a picture about the need of maintaining social distance. The strategy was fundamental since it communicated the importance of maintaining social distance during this coronavirus pandemic.
There are five stages in the product life cycle of a commercial product (Argente, Lee & Moreira, 2018). First is the development stage, at this phase a product is released into the market e.g. Apple’s (AAPL). The second phase is the growth stage, at this stage customers, are already aware of the product and are purchasing it. It is a phrase that is characterized by an increase in the purchase of a given product, an example is an electric car like the Tesla Model S. At the maturity stage the sales of a product tend to slow down or may even stop indicating a saturated market. At this phase, the pricing gets competitive designating a shrinking price margin due to the weight of the outside competitors e.g. Coca-cola.
Even though many companies tend to control products at maturity the decline in any product is always inevitable. At the maturity stage, consumer behaviours tend to change and the demand reduces. The company loses market share of the product and competitors thrive in the market, examples of products in decline stages include, telegram and typewriters. With the increasing innovation and technology, the demand for unique is increasing. The advancing technology demands a unique and advanced product. Telegrams and typewriters have become outdated therefore the company should only divest and look for ways of incorporating new ideas and techniques in order to produce different unique products that can serve the same purpose.
References
Argente, D., Lee, M., & Moreira, S. (2018). How do firms grow? The life cycle of product matters. University of Chicago mimeo.
Kim, M. J., & Lim, J. H. (2019). A comprehensive review of logo literature: research topics, findings, and future directions. Journal of Marketing Management, 35(13-14), 1291-1365.