Search

Strategic groups and International Business

Answer :

Product Life Cycle is an Economic theory which was developed to explain the pattern of international trade. The theory is useful in suggesting that all the parts of the products and associated people come from the area in which it was invented (Yue and et.al., 2016). Afterwards, when it is adopted by the world markets, then the level of production gradually moves away from the exact point of origin. The model could be applied in the organizations who wishes to enter into international expansion or who carries products in different market places. For instance- this could be applied to Hotel Hilton at the time when the hotel enters in Australian market place.  

picture 1

Introduction stage: When Hilton develops products successfully in the national market, it could be then entered in the international market through new outlet. In order to create demand, Hilton needs to make investment according to consumer preferences.

Growth stage: At this stage, demand for Hilton’s services can enhance sales. Thus, as a result the cost of production could be decreased and high profits can be generated. The brand of Hilton may become widely known which can also generate profits for the business organization (Mulder, 2014).

Maturity stage: In the maturity stage of PLC, the product becomes populous among customers even in intensive competitive market. Thus, this might decrease the prices of Hilton’s services and as a result, profit level might decline to a level. Thus, Hilton would have to start looking towards other opportunities as well so that product line can be extended. At this stage, consumers could be encouraged to replace their current product with the new one. Marketing and promotion costs of Hilton hotel could be very high in this stage.

Decline stage: According to generalised concept, the market becomes saturated and the product is no longer demanded by the customers (Wang, 2016). This stage can occur as a natural result; however it could be stimulated by the introduction of new and innovative products. Thus, after reaching towards this stage, Hilton hotel is required to bring new and innovative products at the market place so that the existing customers could be retained with the business. At this stage, generally sales decline; however even after that Hilton hotel needs to offer the product as loyal service entity. This will also assist in meeting needs of potential clients.

References

  • Mulder, P., 2014. Product Life Cycle Stages. [Online]. Available through: <http://www.toolshero.com/marketing/product-life-cycle-stages/>. [Accessed on 22nd February 2017].
  • Wang, W. P., 2016. Innovation Is the New Competition: Product Portfolio Choices with Product Life Cycles.
  • Yue, L. and et.al., 2016. Product life cycle based demand forecasting by using artificial bee colony algorithm optimized two-stage polynomial fitting. Journal of Intelligent & Fuzzy Systems. 31(2). pp.825-836.
Download Full Sample
Cite This Work To export references to this Sample, select the desired referencing style below:
Copy to Clipboard
Copy to Clipboard
Copy to Clipboard
Copy to Clipboard
Boost Grades & Leave Stress

Share Your Requirements Now for Customized Solutions.

Lowest Price
USD 6.27

Delivered on-time or your money back

100+ Qualified Writers

For Best International Relations Assignment Help

View All Writers
FREE Tools

To Make Your Work Original

  • tools Paraphrasing Tool

    Check your work against paraphrasing & get a free Plagiarism report!

    Check Paraphrasing
  • tools Plagiarism Checker

    Check your work against plagiarism & get a free Plagiarism report!

    Check Plagiarism
  • tools Dissertation Outline Generator

    Quick and Simple Tool to Generate Dissertation Outline Instantly

    Dissertation Outline Generator
  • tools Grammar Checker Tool

    Make your content free of errors in just a few clicks for free!

    Grammar Checker
  • tools Essay Typer

    Generate plagiarism-free essays as per your topic’s requirement!

    Essay Typer
  • tools Thesis Statement Generator

    Generate a Compelling Thesis Statement and Impress Your Professor

    Try Thesis Generator Tool

Professional Academic Help at Pocket-Friendly Prices!

Captcha Code refresh

      Estimated Price

      USD 6.6 25% OFF
      Total Price USD 6.27
      182532+Delivered Orders 4500+PhD Writers 4.8/5Client Rating

       
      AD whatsapp