Product Life Cycle Essay Example for Free

Product Life Cycle EssayINTERNATIONAL PRODUCT LIFE CYCLEThe international product life cycle is a theoretical model describing how an industry evolves over time and crossways national borders. This theory also charts the development of a companys food marketing program when competing on both domestic and foreign fronts. International product life cycle concepts combine economic principles, much(prenominal) as market development and economies of scale, with product life cycle marketing and other standard business line models. The four primary elements of the international product life cycle theory are the structure of the take in for the product, manufacturing, international competition and marketing strategy, and the marketing strategy of the company that invented or innovated the product. These elements are categorized depending on the products pointedness in the traditional product life cycle. Introduction, growth, maturity, and decline are the stages of the prefatori al product life cycle. During the introduction stage, the product is new and not completely understood by approximately consumers. Customers that do understand the product may be willing to pay a higher terms for a cutting-edge good or service. Production is dependent on skilled laborers producing in diddle runs with rapidly changing manufacturing methods.The pioneer markets mostly domestically, occasionally branching let out to sell the product to consumers in other developed countries. International competition is usually nonexistent during the introduction stage, but during the growth stage competitors in developed markets begin to copy the product and sell domestically. These competitors may also branch out and begin exporting, often starting with the county that initially innovated the product. The growth stage is also marked by an rising product standard based on mass issue. Price wars often begin as the innovator breaks into an increasing amount of developed countries, introducing the product to new and untapped markets. At some point, the product enters the maturity stage of the international product life cycle and even the global marketplace lives saturated, meaning that or so everyone who would buy the product has bought it, either from the innovating company or one of its competitors. Businesses compete for the remaining consumers through lower prices and advanced product features. Production is stable, with a focus on cost-cutting manufacturing methods, so that lowered prices may be passed on to value-conscious consumers. Product innovators must guard both foreignand domestic markets from international competition, while eventually breaking into riskier developing markets in search of new customers. When the product reaches the decline stage, the innovators may move production into these developing countries in an effort to boost sales and keep costs low. During decline, the product may become obsolete in most developed countries, or the price is driven so low that the market becomes close to 100% saturated.