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Author: Nancy Greene Peration Curve (SCurve) March 1998 Copyright169。 1998 Bain Company, Inc. 1 Peration Curves BOS Agenda ?Concept ?Application ?Case example ?Methodology Copyright169。 1998 Bain Company, Inc. 2 Peration Curves BOS ?Products can be thought of as following a lifecycle that has several distinct phases: –early adoption/trial –mass adoption –saturation/substitution –decline ?The product lifecycle generates a series of market peration rates that tend to follow a specific pattern, called an Scurve (or peration curve) ?Given the pattern of peration curves over time, and given that this relationship holds to some extent in almost every case, peration curves can be a powerful tool in predicting the growth of new products What is a Peration Curve? (SCurve) 3 Peration Curves BOS Product LifeCycle Time Volume Products can be thought of as following a lifecycle that has several distinct phases. Early adoption/trial Mass adoption Saturation/substitution Decline Driven by people who always adopt new things early and fuel the product’s initial growth The product bees accepted by the general market。 characterized by rapid product growth The product has either saturated the market, or is already being substituted for by another product that is in an earlier phase of the product life cycle The decline of the product, driven by plete substitution for or replacement with another product 4 Peration Curves BOS Characteristics of Peration Curves ?Peration can occur at the expense of an existing product, or it can drive new markets to grow ?Several factors will influence the end state, or saturation point, of a product: –duration/speed of product lifecycle –petitive forces –innov