西雅图代写Assignment 标准化产品

2016-12-26 12:34




西雅图代写Assignment 标准化产品

In stage three, termed as standardized product, when the price-based competition become the norm of the market, P&G may stop the production of its different brands in the home country altogether and may start importing the product into USA from its plants located in foreign countries. For example, Camay which is a brand of soap marketed by the organization are no produced in the US plants rather the product is produced in the P&G plants located outside the country and is imported into the country.
The Vernon's international product life cycle theory are extensively utilized by organizations that have multinational operation and on the basis of the guidelines of the theory the management of such organization made their decisions that which of the product will be produced in which part. The guidelines of the theory are especially useful for products that are of technological nature. In addition, the product to some extent appropriately describe the pricing behavior of the US-based companies that why they are in position to charge premium prices when they introduce new products into the market and why the prices of different products are reduced with the passage of time (Hussain, 2009).
The patterns of internationalization that are suitable according to Vernon's theory of international product life cycle vary from period to period. During the start of the international product lifecycle there is no internationalization as production and consumptions of the product are limited to the home country. However, when the product is distributed across the country, the export of the product get started, however the least risky strategy of internationalization termed as export is used that paved the way for more risky internationalization in the foreign country in the years ahead. During the second stage of the international product lifecycle, the firm may be engaged in more risky ventures in foreign country that may include 100% ownership, joint venture or some form of collaboration with the local firms in the foreign country. In the third stage of the international product lifecycle theory, the process will be reversed and the place where the product was originated will be the target market and all the production facilities of the organization will be shifted to the foreign country.