International Product Life Cycle

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Recommended: Critically analyse the significance of product life cycle

INTRODUCTION

In this essay will explain and evaluate the stages of the international product life cycle and identify locus of operations and target market at each stage. We also will identify the different dimensions of the international product mix with company illustrations and examine the new product development process and the activities involved at each stage in international markets. Finally we will also will examine the degrees of product newness and address international diffusion processes and providing some examples regarding international product life cycle.

Overview about the IPLC

IPLC was create by Raymond Vernon in late 60s.It was a model that explain about the international pattern of organisation.Product life cycle theory divides the marketing of a product into four stages: introduction, growth, maturity and decline. When product life cycle is based on sales volume, introduction and growth often become one stage. For internationally available products, these three remaining stages include the effects of outsourcing and foreign production. When a product grows rapidly in a home market, it experiences saturation when low-wage countries imitate it and flood the international markets. Afterward, a product declines as new, better products or products with new features repeat the cycle.Vernon focused on the dynamics of comparative advantage and draw inspiration from the product life cycle to explain how trade patterns change over time.

His product life cycle described an internationalization process where in a local manufacturer in an advanced country begins selling a new, technologically advanced product to consumers in its home market. Production capabilities build locally to stay in close contact with i...

... middle of paper ...

...t Life Cycle and International Trade

Louis T. Wells

1972

Harvard Business School Press

United States

ISBN 978-0875840956

Grantham, Lisa Michelle. "The Validity of the Product Life Cycle in the High-tech Industry." Marketing Intelligence and Planning. June 1997.

Gruenwald, George. New Product Development: Responding to Market Demand. NTC Business, 1995.

Hedden, Carole. "From Launch to Relaunch: The Secret to Product Longevity Lies in Using the Right Strategy for Each Stage of the Life Cycle." Marketing Tools. September 1997.

Rink, David R., Dianne M. Roden, and Harold W. Fox. "Financial Management and Planning with the Product Life Cycle Concept." Business Horizons. September 1999.

Ryan, Chuck, and Walter E. Riggs. "Redefining the Product Life Cycle: the Five-Element Product Wave." Business Horizons. September/October 1996.

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