Reference no: EM131520505

Question: A local administrative authority allowed a supermarket development to go ahead, provided that the company concerned built an extension to the authority's sports centre on an adjoining site. In recent years the sports centre has encountered a growth in competition from local commercial recreational organisations. Simultaneously, the authority has experienced a reduction in its central funding, and has steadily increased its charges for the use of its sports centre facilities. In reviewing its services at the sports centre, the authority has applied the product lifecycle ( PLC) model. It has identified the stage within the life-cycle at which each of its sports centre services is positioned, as follows: Introductory stage: martial arts, with little take-up as yet. Growth stage: squash-playing facilities, which have required capital investment from the authority and ongoing maintenance costs of the courts and equipment. Demand for the facilities is increasing rapidly. Maturity stage: gymnasium facilities, which require little maintenance expense and experience steady demand which generates surplus cash. Swimming, which incurs a continual increase in maintenance and water purification costs. Decline stage: badminton, with a continual reduction in demand.