Opm300 Module 3-Case

Regal Marine Case 3

Trident University International

OPM 300

Regal Marine Case 3

Products Life Cycle

The product life cycle that applies to Regal Marine products is new successful boats every three to five years. Every product manufactured has four phases to its lifecycle. The first phase of a product’s lifecycle is introduction and the design. This phase is the most important stage of any product but typically has a negative cash flow. Once the boat design has been conceptualized, specifications are used from a Computer Aided Design (CAD) model to sculpt a foam-based carving called a plug which is used to make a mold of the boat.

In the next phase growth, the boat is introduced into the market. With proper design and marketing from Regal Marine the boat’s popularity and sales should continue to grow. The growth will slow down and when it does the boat will enter the third phase of maturity. At this point the boat’s sales revenue will peak, but the boat needs to be closely monitored because Regal Marine needs to know when to pull the plug on this boat. The final phase is decline. The sales revenue will continually fall but the boat is now making a net profit because the development costs have been paid for.

Strategy to Stay Competitive

Regal Marine’s competitive strategy is well thought out. One of Regal’s greatest advantages is constantly seeking design input from customers, dealers, and consultants. The company is also known for redesigning their last product to be more extreme and stylish. Regal also stays competitive by continuously introducing new products to counter those boats whose lifecycles are declining. Regal gets key suppliers and designers together in the studio, while designing a new boat and enhancing features of existing models. It uses the suppliers input in the design stage by urging them to participate in the design drafting process. This helps in speeding up the initial design process. While competitors lose out on...