What is essential for adapting different strategies across phases of a product's life cycle?

Accurate forecasts of demand and cash flow are crucial for adapting different strategies across the various phases of a product's life cycle. Understanding demand helps a company to adjust its production levels, inventory management, and resource allocation effectively. During different phases—introduction, growth, maturity, and decline—market dynamics change, and organizations need to respond accordingly. For instance, in the introduction phase, demand may be uncertain, requiring careful cash flow management and production planning. As the product moves to growth, investments may be needed to scale production. Cash flow forecasts also inform strategic decisions about marketing expenditures and potential adjustments in pricing strategies as market demand fluctuates.

This accurate forecasting ensures that the organization can navigate the complexities of each phase efficiently, optimizing both resources and financial health. Other options do not adequately address the comprehensive requirements for navigating all stages of the product life cycle and may lead to insufficient adaptability.