Details about IPLC

1. INTERNATIONAL PRODUCT
LIFE CYCLE
SUBMITTED BY :-
HARSHVARDHAN MEENA
SUBMITTED TO :-
KALI.C MODAK SIR

2. MEANING :-
The international product life cycle is a theoretical
model describing how an industry evolves over time
and across national borders. International product
life cycle concepts combine economic principles,
such as market development and economies of
scale, with product life cycle marketing and other
standard business models

3. IPLC INDEVELOPED NATION

4. INNOVATION STAGE :-
In developed nations like U.S.A which are more focused on research
and development innovates a new product for the market. This is
the stage for the product when the product is in available in the
domestic market only , during this time it has very low market , low
competition and low sales margin . This is the time when the
product need lots of advertising and promotion to capture market
share and this is called innovation / introductory stage.
FOR EXAMPLE :- THE BULB WAS INVENTED IN USA BY THOMAS ALVA
EDISION IN NOVEMBER 1879 AFTER 3000 TEST DESIGNS THE BULB
WAS INVENTED AND RECEVIED THE PATENTS RIGHTS 4 JAN 1879.
THIS WAS THE INNOVATION STAGE OF BULB.

5. PRODUCTION STAGE :-
A production stage can be too referred as the stage when
the product is ready to be launched in the market. In this
stage the main target is to meet the target demand to
reach scale of economies.
For example :- After the innovation of the bulb the
production was started by Edison Electric illuminating
Company of New York in 1880. The demand was huge in
the local market.

6. EXPORT :-
After reaching the economies of scale or saturating the local
market the product will be exported to those country where
this product has not launched yet.
FOR EX :- After capturing the whole market in USA the
edision electric illuminating company exported their product
in the regions where bulb was not yet launched.

7. IMPORT :-
After targeting the global market the companies of the
developed nations start transferring their manufacturing
units to a developing countries as it gives them more market
to tap and low manufacturing cost.
FOR EX:- After capturing the global market of bulb the
edision electric company merged with Thomas Houston
electric company and formed GENERAL ELECTRIC and start
the production in developing countries like china in 1908.

8. IPLC IN DEVELOPING NATION

9. IMPORT :-
In developing countries the iplc start with import due their
lack of capability in innovating new products. So in
developing countries firstly the import is started by the
developed countries.
FOR EX:- USA is the world largest weapon exporter and has
the highest technology in that field. USA started importing
of DRONES or UAV to India was in 2005 due to its
incapability to manufacture it.

10. CONSUMPTIONS :-
After the imports of the particular product its consumptions
starts in the developing country in a very high level due to
Very high demands
FOR EX:- The imports of the armed drones begins to take a
share
Upto 5% to 11% till 2010.

11. PRODUCTION :-
After the huge consumption of the imported products the
manufactures in the developing country copy the
technology of the imported product and start their own
production unit.
FOR EX:- With the increasing imports of armed drones and
domestic drones the government Defence company and the
local producers copy their designs and technology and start
the production in the country itself.

12. EXPORTS:-
In this stage the developing country which was importing
the products from developed country starts to export the
copied good to the other country in less cost due to the low
manufacturing cost and no cost for innovation.
FOR EX:- DRDO copied the technology used in the drones
made USA and manufactured the cheaper drones and sell
them to poor countries like Bangladesh , Srilanka ,
Indonesia .

13. THANK YOU