
In both Chapters 2 and 5 we discuss product life cycle and its strategic importance. In Figure 2.5 (page 40), we identify ten products that are passing through the 4 stages of Introduction, Growth, Maturity and Decline.
Here is an 11th example you can use in class –automobiles–whose changes you can follow through these stages. We start with the 1950’s land yachts like the Cadillac Eldorado. This was followed by the 1960’s station wagons. Socioeconomic shifts drove Americans’ move out of gas-guzzling embellished cars and into tiny, economical Japanese imports following the oil crises and new tailpipe emissions standards of the 1970s. Then came the 1980s minivan (which almost totally replaced station wagons). In the 2000s, the sport-utility vehicle spurred the minivan’s retreat.
The SUV has devoured the American car market, now accounting for nearly 60% of new vehicles purchased. Stricter vehicle-efficiency standards and governments’ push toward electrification challenge the supremacy of the blunt, heavy SUV. And car designers are tired of drawing them. “We all get bored to death because it’s absolutely ubiquitous,” says GM’s lead designer in The Wall Street Journal (June 13, 2024).

The ever-expanding options, along with higher interest rates, are pricing younger and lower-income consumers out of the market. The average new-car price is now nearly $50,000. This has automotive designers, executives and analysts focused on a big question: What comes after the SUV? Will the boxy SUV be followed by even boxier forms?
Electric vehicles have no need for hoods, as their batteries are typically mounted in the floor, and their motors are near the wheels. With no drivers, upcoming autonomous vehicles won’t need dashboards or steering wheels. Executives think that maximizing human and cargo space in such vehicles results in a rounded box on wheels: a nouveau vanlike form nicknamed “the Toaster.” GM research has shown that this spacious shape can provide passengers in autonomous vehicles more confidence in surrendering control. “It’s more distance between you and a potential accident. The shape also has a “functional, happy character,” adds GM’s designer.



