Time Factor - The very fact that products now have short product life cycle is itself a challenge for companies. The products get short time to establish them in the market or, in short, create Brand Equity. The problem is that by the time a product is launched in the market, the competitors already have a similar variant ready, thereby, shortening the life of the original product. The challenge, therefore, is to sustain the product in the market.

Changing Consumer Preferences - The consumer today, is inundated with alternatives as compared to the earlier times. Take the example of automobile industry when only Fiat and Ambassador were available. There was little or no choice and the consumer had to be satisfied with whatever was on offer. But now the consumer can choose from a number of brands and the brand itself has a number of products.

Competition - A lot has been said and written about the consumer being the king and their role in product development. But in due course, the company has to face competition from brands first and then the products that represent the brand. It is not only important to know the consumer, but it is equally important to know about the competitors as well. And then design strategies, target segments, define objectives and sense the reaction pattern; all of which should be in tune with the short nature of the product life. Another important aspect would be to gauge the strengths and weaknesses of the competitors.