Product Life Cycle In International Business

The four stages of the product life cycle are:

(a) Introduction                             (b) Growth
(c) Maturity or saturation             (d) Decline

The management develops product portfolio at different phases in the product life cycle. Profit is usually achieved much earlier and by the saturation stage the production becomes process oriented. The industry structure in the introductory stage includes innovative firms that lead the market. The growth phase is characterized by large number of firms entering the market, product differentiation, and reduction in price due to increased competition. The maturity or saturation phase requires high investment in advertisements and specialized equipments, lowering price to remain in the market and innovation. R&D plays a vital role here which mat leas to product improvement or new product. The declining stages witnesses stagnating or loss or growth and profit.

For more help in Product Life Cycle In International Business click the button below to submit your homework assignment