Solved: Consider the Product Life Cycle(PLC), (Chapter 7 from strategic management of health care

Consider the Product Life Cycle(PLC), (Chapter 7 from strategic management of health care organizations, seventh edition) and its application to nursing homes. Are nursing homes in Stage 4 of the PLC? Given the falling occupancies, closures of nursing homes and the growth of substitutes, like Assisted Living, many analysts think nursing homes may be in decline. Argue that from a Product Life Cycle perspective, nursing homes are in decline.

Expert Answer

Nursing homes are in the decline stage of the product life cycle because they are experiencing a shrinking market coupled with falling sales and profits. Consumers are no longer in favor of nursing homes because they prefer something newer & better such as Assisted living and there is not much the nursing homes are able to prevent this .

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