Product lifecycle is a concept that determines the future of a company’s business. The last or the terminal phase of the cycle is:

The terminal phase of the product lifecycle is known as the Decline Stage. During this stage, the following key characteristics are observed:

1. Decreased Sales: Sales begin to decline as the product reaches market saturation or faces obsolescence due to newer technologies or changing consumer preferences.

2. Reduced Profits: As sales decrease, profits typically follow suit. Companies may experience diminishing returns on their investment in marketing or production.

3. Market Exit: Some companies may choose to discontinue the product entirely, while others might opt to sell off remaining inventory at discounted prices.

4. Focus on Cost Reduction: In an effort to maintain profitability, companies often streamline operations and reduce production costs during this phase.

In summary, the decline stage signifies the end of a product's lifecycle, compelling businesses to assess their product portfolio and make critical strategic decisions regarding future directions, product innovations, or possibly exiting the market altogether.