The life cycle of a product is associated with marketing and management decisions within businesses, and all products go through five primary stages: development, introduction, growth, maturity, and decline. Each stage has its costs, opportunities, and risks, and individual products differ in how long they remain at any of the life cycle stages. We can analyze from the product life cycle that as the product moves to the next stage of its life-cycle, the sellers control over prices keeps on further reducing. So, in order to save itself from the stage of saturation and decline, the firm makes a fresh innovation just at a time when the existing product is about to enter the saturation stage.