Requesting 200 words response to the following post using at least three substantive PEER-REVIEWED SCHOLARLY ARTICLES (AT LEAST 2 DIFFERENT THAN IN THE BELOW POST) to provide those substantive replies.
Key Term (International product life cycle theory) and Why You Are Interested in It (100 words minimum)
The key term that I chose is the International product life cycle theory. I chose this key term, because I have studied the product life cycle in another class and I thought it was very interesting. Now, I would like to know more about the international product life cycle. Since I am studying International Business, I would like to get more knowledge and acquire more concepts about this topic. Also, I want to compare the similarity and differences between the Product life cycle and the International Product life cycle. Overall, I am interested in learning more about this key term, because it is an interesting topic for me.
Explanation of the Key Term (100 words minimum)
The International product life cycle theory was developed and Published by Raymond Vernon in 1966. Satterlee (2018). This theory contains three stages. The first stage discusses that the new product is the first part. This is for the purpose of satisfying the local customer that lives in a country that is highly developed. In the second stage the maturity product starts to enter into the domestic market, and also the product starts to enter into the foreign market. In this stage the product begins to expand in the domestic market. In Stage three, the product starts at a more international market. Therefore, in this stage the product starts facing the problem of ways to stay in the market to obtain the desired earnings (Satterlee, 2018). As a result, completing all three stages of the product completes the process for the International product life cycle.
Major Article Summary (300 words minimum)
The article that I chose to summarize is “International product life cycles, trade and development stages” by David at. el., (2017). This article points out a proxy for the primary stage activity when a country exports product based on the product life cycle theory. In the next step they compare the relationship with this proposal and the economic growth in 93 countries, from 1988 until 2005. They noted that the country that does not wait until the third stage and instead does an early stage release is because the country has a high economy. High economy means that the country is economically stable and in a good position. However, it is recommended that in the early stage, the country concentrate in obtaining more demand in the local market. This is important because it helps the company take the appropriate precautions before choosing a wrong product that will not make profit. Then, in the maturity stage, it is recommended to export the product. In addition, this will help the product stay in the market, and ensure the possibility to supply the demands, when the product goes abroad. Therefore, the product will be able to compete with other products in the market. The researchers found that using a good strategy trade and knowing well the countries’ policy, put the countries in a high level to trade and compete in the international market. Therefore, it is important to know the policy of a country because it will give you the needed information to avoid mistakes. This is considered as an important tool to develop and create prosperity in any country. Another important point to highlight in this article is the importance of knowing which product fits in each market to export the right product. Doing the contrary of not checking what product fits can keep the country in a low growth state of the economy
The cited work related to my above explanation, because both of them are discussing the product life cycle and the importance of following the three stages that encompass the international life cycle. Based on the previous learning strategies, one is able to notice that it is important to have a clear knowledge about the product life cycle. This is because following the stage of the product life cycle when introducing a new product on the market, helps to ensure a good introduction of the product for both local and international markets. After reading the article above, and studying the assigned module week, I have extended my knowledge about the benefits and implications that come with the international product life cycle. Now, I have a clear concept about the topic and ways of applying the information in the future. This will be extremely helpful when working directly with an international market.
I received information about the product life cycle from the other four articles. This is due to the fact that all four articles are related in various ways. For example, Horvat, et. al., (2019). They stated that introducing a new product in the market has a big chance to fail. This is good information to know when studying the new product that will be introduced in the market. According to Restuccia, et. al., (2016), is related to the other articles, because they stated that when a product is introduced in the market, on this primary stage the distributor is the first person that can see the problem that comes when the consumer starts using the product. Also, they can see the improvement that needs to be made to the product, so that it can reach a broader market. Also, Bian-bian, et. al., (2019), stated that research findings indicate that to secure competitiveness in the abroad market, the company has to adapt the product to the product life cycle. Furthermore, they believe it’s important to combine this to the changing technology. This is part of the evolution product strategy. In the article Chen, & Shao, (2020), discusses the relationship between product life cycle and length of time. The state that the length of time that product is in the market making money is at risk based on the imitation of the product. Therefore, it is important to carefully choose the right product in the first stage of the cycle. This is because the product directly impacts the length of time it is successfully on the market. All five articles have given me a clear explanation about the stages in the product life cycle. Now, I have a big picture of how to describe each of these stages.