International Product Life Cycle Theory

INTERNATIONAL PRODUCT LIFE CYCLE THEORY EXPLAINS WHY SOME PRODUCTION ENTERS INTO THE INTERNATIONAL AREA. ANALYZE IN DETAIL WHY SOME PRODUCT FAILS TO SURVIVE AT THE INTERNATIONAL MARKET PLACE WHILE SOME SURVIVE.
1.0 INTRODUCTION

According to Capozzi, C (2015), the product life cycle defined as a movement for a product goes trough from the scratch level until the decline level. The level is separate into four levels, which are, introduction stage, growth stage, maturity stage, and lastly is decline stage.

George N (2015) has stated that product life cycle is the process of monitoring the product from the scratch level until the disposed level. All companies in the worldwide to maximize the profit and minimize the cost of production can use product life cycle theory. The assessment of product life cycle can be valuable data when it is compile together.

1.1 Review of International Product Life Cycle theory
1.1.1

In this stage, the demand of product is increasing. Hence, the cost of production will decrease and the profit of sale will increase. For example, Nokia Company enter the growth stage in 2003 until 2009. They launched phones without external antenna. Besides, it comes with better features like games, alarm, ergonomic keypad, display and so on. Moreover, a model like Nokia 3310 has been marked in the beginning of growth stage. On the climate of growth stage, Nokia Company came out with N95 model to compete with Apple’ iPhone. Another example is Pepsi Company. They reached their growth point on 1930 until 1970. Pepsi-Cola’s becomes increasingly competitive to continually improve the product. Hence, Pepsi-Cola now came in bottles, rather than just soda fountains. Next is Apple Company. The Apple’s product that was produced in this stage are iTouch, iPhone, and iPod Nano, which were produced on 2009. Apple created new product, new features with high demand, and a lot of advertisement. Besides, they also improved the