Cycles
introduction, growth, maturity, decline
what are the 4 stages of product Life cycle theory?
proposed the Product Life-Cycle Theory in the mid-1960s
Who is Raymond Vernon?
stage that experiences rapid sales growth and increasing competition
What is growth?
in the beginning stages of a product life-cycle, the product is only accessible to this income group
What is high income?
Stage that is characterized by high cost and little profit
What is introduction?
As foreign demand grows, this begins to happen in other advanced countries
What is local production?
businesses must decide to discontinue or cut prices during this stage
What is decline?
In the maturity stage, this becomes the primary competitive weapon as the product becomes standardized
What is price?
longest stage of product Life cyle
What is maturity?
this becomes limited in the product country of origin when production expands to other countries
What are exports?