International Product Life Cycle Essay Example | Topics and Well Written Essays - 1000 words

International Product Life cycles/second - Essay ExampleThe firm with the innovative ware serves the home market first and then exports the return to foreign markets. This point good deal be clearly supported by the following statement. Many of the products install in the worlds markets were originally created in the United States before being introduced and refined in other countries. In most instances, regardless of whether a product is intended for later export or not, innovation is initially designed with an eye to capture the U.S. market, the largest consumer nation.In the second phase, production starts in foreign countries either finished licensing or re-engineering of the product. Importing countries in the initial stages, generally, wealthy countries import innovative products gain product familiarity. As product familiarity increases, demand in the foreign markets expands. This attracts more players and results in manufacturing in foreign countries. (Hill W.L) This pr oduction in foreign countries slowly replaces exports of the innovative firm.In the third phase, firms manufacturing in foreign countries gain production jazz and move down the appeal curve. Sometimes they manage to produce the goods at a lower cost than is possible for the innovative firms. ... Of these, only three are U.S. firms, with the rest being from Western Europe, Japan, South Korea, Taiwan, Mexico, Brazil, and Malaysia.In the fourth phase, these foreign firms have adequate product experience and economies of scale to export their products to the innovators home country. written language television sets, for example, are no longer manufactured in the United States because many Asian firms can produce them much less expensively than any U.S. firm. Consumers price sensitivity exacerbates this problem for the initiating country.Some of the name characteristics and features of a product are its quality, styling, and performance. These characteristics are affected by consumer needs, conditions of product use, and ability to buy. The factors that affect product attributes change from country to country. For example, in the US, bicycling is a recreational activity. So buyers want their cycles to be whippersnapper and have the speed that is essential for rapid touring. However, in Nigeria, the bicycle is often a measure of transfer and customers prefer cycles that are heavy and durable. In Nigeria, speed and lightness are not the criteria for purchase decision-making. sounding at these four phases, one can deduce that in the first phase the product was new. In the second phase, the product was maturing. In the third and fourth phases, the product gets standardized. In phase four, the product becomes a commodity. In this phase, the product is manufactured in less-developed countries and exported to developed countries. Understanding this cycle helps international marketing managers to check the patterns of international trade and production and helps them in preparing a logistics plan.