Describe the International Product Life Cycle and discuss various life cycle stretching strategies.
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The international product lifecycle (IPL) is an abstract model briefing how a company evolves over time and across national borders. This theory shows the development of a company’s marketing program on both domestic and foreign platforms. International product lifecycle includes economic principles and standards like market development and economies of scale, with product lifecycle marketing and other standard business models.
The four key elements of the international product lifecycle theory are −
*The layout of the demand for the product
*Manufacturing the product
*Competitions in international market
*Marketing strategy
The marketing strategy of a company is responsible for inventing or innovating any new product or idea. These elements are classified based on the product’s stage in the traditional product lifecycle. These stages are introduction, growth, maturity, saturation, and decline.
Concept of product life cycle is important for the product planning. The different stages of life cycle may be managed in such a way that the product attaining the maturity or declining stages may be introduced in foreign market. Based on the efficient use of factors of production in a particular country, the product may be exported or imported among different countries. International product life cycle discusses the consumption pattern of the product in many countries. This concept explains that the products pass through several stages of the product life cycle. The product is innovated in country usually developed country to satisfy the needs of the consumers. The innovator country wants to exploit the technological break through and starts marketing the products in foreign country.Gradually foreign country also starts production and becomes efficient in producing those commodities.