Develop a revised international product life cycle plan.
The international product life cycle is a theoretical model describing how an industry evolves over time and across national borders. The stages of traditional product life cycle are introduction, growth, maturity, and decline. “International product life cycle suggests a sequential progress for the firm’s expansion into the international market, which follows the life cycle of products.” (Fatehi, 2008) The four stages of the international product life cycle are new product stage, mature product stage, standardized product stage and international product stage.
During the first, new product stage, firms in developed countries produce new products for the domestic market. The products are manufactured and sold in the firm’s home country and additionally exported to other high-income countries. In the second, mature product stage, products are perfected and standardized. “More firms enter the market and price competition forces them to establish manufacturing facilities in other high-income countries, to serve foreign markets with local production.” (Fatehi, 2008) The third, standard product stage is characterized by heavy price competition. Firms are often forced to move production to low-cost countries and the product is then “exported” back to the home and other high-income countries.
In the course of the first 3 stages of the international product life cycle, the retail or fast food concept could be “exported” to China through the internet and international advertising and sponsorships. For example, a retail company could sell their product directly to China by advertising and distributing product through internet sales. A fast food company would be a bit more limited as it would not be feasible to export a food product. Creating knowledge of the product in China through international advertising and sponsorships would be a way of introducing the product to consumers and possibly generating a...