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PLC(Product Life-Cycle)
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PLC
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Introduction Stage :
Product is introduced, pricing levels are fixed at low levels. Distributed to selective customers.
PLC
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Growth Stage :
firm seeking to build brand preferences. Market share. Product quality is maintained. Added service measures taken Price remains the same as the firm enjoys profits. Expands in distribution Promoted to broader customers.
PLC
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Maturity Stage: Growth in sales diminishes. Company faces tough competition. Defending market share value.
Additional innovative features maybe added to product Lowering of price maybe done Promotional costs raise backing goodwill of the product.
PLC
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international market till the decline of the same. The Life cycle begins when a developed country, having an innovative product, wants to exploit its technological breakthrough by selling abroad.
IPLC
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production facilities. Before too long Lesser Developed Countries(LDC) soon follow. Efficiency/ comparitive advantage shifts from developed countries to devoloping nations. Finally advanced nations, no longer cost-effective, imports products their foremore customers.
IPLC
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of its own creation. This can be explained in four stages Graphically represented with three distinct curves.
Initiating country curve Advanced nations curve LDC curve
Stages of IPLC
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IPLC
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IPLC
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new product. Overseas markets are established Other developed nations start importing because similar needs are noticed while having high income levels.
IPLC
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their own production of similar product. Initiating nations exports are stable because LDCs find a need of that product.
IPLC
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declined as the cost of production begins to raise. Other developed countries raise their imports with offering lower prices and using product differentiation techniques. At the end Initiating nations exports dwindles. Example : US native Automobile industry.
IPLC
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standardization and comparative disadvantage. As the initiating nation lacks competitiveness. High labour costs make it impossible for Initiating nation to produce. Where as LDCs have high advantage with lower labour costs.
Distinctions
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PLC
IPLC
At maturity stage, the company can take Other developing countries and LDCs measures like cost cutting, introducing compete with initiating country at new features to the product. maturity stage. The final stage may lead to company fall The final stage leads to transfer of down. production plants of innovative company to LDCs.
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QUESTIONS ?
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