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Thursday 4 April 2013

International Product Life Cycle Theory

Yanko Petrov, CEO of a Bulgarian based dairy harvest-tides manufactuer is pull together information to consider foreign direct investment and a location for their newfound harvest. Since this is a new product (special course of feta cheese) and is not being sold anywhere, I would recommend spare-time activity the international product life cycle theory.

The international product life cycle theory constitutes 3 different stages for a brand new product. The first stage is new product, which recommends that the product is produced in the home province. Yanko has several advantages in doing this because he already has a dairy manfacturering plant Bulgaria. retention the intial product manufactuerering close to home will the research and knowledge departments to readily availble receiving sample products. Yanko also appears to have experience in producing other dairy products milk, yogurt, cheese, etc. ) which gives him an advantage. Next, the maturing product stage is when the product is monitored for the high upest demanding area. Normally, a business facility is built in this country to meet the demanding needs of the product whichs prepares the company to reduce production cost.

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It is always wise to find a country that wad produce the product at the lowest possible cost. Finally, the interchangeable product stage allows for the product to compete locally or globally. This is one of the most important stages of the international lifecycle.

Many companies create expectant products but are unable to compete and maintain high profit margins which eventually causes a company to fail in that product.

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