Impact of Shortening International Product Life Cycle

Abstract

The changing product life-cycle is having a significant effect on successful international business planning. Strategic planning that correctly predicts the life-cycle of the products of a business has the potential to be much more effective than planning that does not The forces that are causing a general shortening of the product life-cycle, from both the global and domestic points of view, are examined. In the past, many companies in differing industries sold their products in their home country until the market was saturated. At that point, the company branched into other countries to gain new customers. Eventually, production was begun in the new market. This process was carried out in a slow manner, often one country at a time. The practicality of this strategy, in general, has been lessening as product life-cycles have been shrinking. An alternative strategy of simultaneous penetration of multiple markets in conjunction with a dispersed global strategy is proposed. The strengths and drawbacks of such a strategy are discussed.