Product Life Cycle Essay
“The international product life cycle (PLC) theory of trade states that the location of production of certain kinds of products shifts as they go through their life cycles, which consist of four stages—introduction, growth, maturity, and decline. ” There are many ins and outs when a company is putting a product into production and distribution.
You must be able to assess the the impact that it is going to gain for your company, for instance when Blackberry makes new phones they have to decide what is going to be a draw for consumers from the operating system, he abilities that come with the phone from wifi connectivity, gps, instant messaging, camera capabilities, battery power and many other options that the consumer is going to inquire about in the competitive market of cell phones and cell phones manufactures, and the distribution and profitability is going to be the marker of success of the product.
This is a decision that concept teams and designers must deal with when making a product; we are going to look at the company Audi a German car manufactures that has had great success with their automobile and the history s impeccable and with the impact we are going to look at the life cycle in what goes into making this car company, one of the best car makers and manufactured vehicles in the world today. “Arrival of the product’s maturity stage is evident when competitors to begin to leave the market, sales velocity is dramatically reduced, and sales volume reaches a steady state.
At this point in time, mostly loyal customers purchase the product. “The Audi A4 has reached a stage of maturity that doesn’t have the onslaught of new buyers, the Audi lineup has diversified itself ith select products that offer a more entry level product that is better on gas, and has more of the financial impact with new design concepts, with wagons, coupes, smaller engines that are preserving the manufacturer’s competitive edge in the automobile industry. The A4 is still an important cog in the Audi machine, but the popularity of the A3 and, latterly, the A1 have eased the burden of expectation quite considerably. Perhaps that makes it a little easier for Audi to finesse this latest generation A4 without too much in the way of compromise. ” “In the wake of the global financial and economic crisis, the drastic slump on stock arkets worldwide initially continued unabated at the start of 2009.
Thanks to the many state rescue packages for the financial sector and supporting measures by leading central banks, the situation on the capital markets then stabilized towards the end of the first quarter. ” So with the banks of the home country are helping to lend the finances need to invest in Audi’s financial growth and the supplement of income, generates the opportunity for the company to continue their worldwide success, of exporting one of the leading German automobiles in the world.
Europe has proven to be a happy hunting ground for Audi and it now has both Mercedes and BMW looking over their shoulders. For the six-month period under review, total European sales grew 13. 5 per cent to about 382,850 cars with its SUV sales up 23. 5 per cent over the ame period last year. ” So the overall positioning and product sales are being generated for the company in their home country and is having great success from the sale from their entire lineup and with the generated revenue from the public sector, the company’s growth financially is leading to the verall success of the car manufacturer.
As the year progressed, the increasingly positive business indictors and initial signs of recovery in the global economy fueled sharp gains on major international stock markets. A resurgence in confidence in stock markets among market players resulted in many indices finishing the year well up. ” With the public stimulation in the stock of the company they are being rewarded for the great innovation, stability and creativity they have when they are entering foreign markets and their market as well.
With the financial backing the company is oing to grow and with the company growing around %24 from the previous year their products will continue to have a great international impact. “Trading groups, whether bilateral or regional, are an important influence on MNEs’ strategies. Such groups can define the size of the regional market and the rules under which companies must operate. Companies in the initial stages of foreign expansion must be aware of the regional economic groups that encompass countries with good manufacturing locations or market opportunities.
For instance when you have a company that assesses the needs of their roduct in a foreign market, there is cost associated with the export of their product and with the agreements that the company has that is protected by trade agreements the company will save monies in the long run and withstand the impact of their product being sold in other markets, by sometimes having that price reduction of tax, shipping cost when building that relationship, to progress the growth in their company and in both markets of goods exported and sold. One of the factors behind the success of the brand in Jamaica, Stewart believes, is its affordability despite it being a premier brand. With the brand being sold well in the Jamaican market the bilateral agreement will have success because of the impact that the affordability in this market will have great growth for the company and Jamaica’s market as well. “In China, mobility is happening top-down.
That society’s elite has long been driving full-size cars; the new, affluent middle class is now discovering smaller premium vehicles. In India, mobility is taking shape in the lower segments; the premium markets for larger vehicles is now growing continuously. ” With the multilateral movement as well the company is growing in many foreign markets with nd aiding the backing of the Audi brand, that has shown great impact financially for the company and benefits in operating in these markets, reflect the %24 growth. European companies taking advantage of free trade in the Caribbean Single Market Economy (CSME) by establishing trade offices in Jamaica or distribution agreements with Jamaican companies with a view to providing your goods or services to the Caribbean Single Market Economy. ”
The free trade agreement offers the company to enter the Jamaican market and gain financial traction from the public, buying their cars at a affordable price, the ilateral agreement helps in terms of sales and distribution in allowing the flexibility, opportunity and growth needed for the company and as well as stimulating the Jamaican market. “Many more people in Jamaica are buying Audi motor vehicles because the brand is cool and its drivers have no class pretensions. They generally tend to be professional, well read and discerning. ” “Audi will launch diesel engine options for the A8, A6, and Q5 in the U. S. within the next 24 to 30 months, according to an announcement made today by Johan de Nysschen, he president of Audi’s American division. ” If you are an American you know what it means to fill up at the gas station and know that you won’t last that long on the road, until the next time that you are going to need more gas.
One approach that Audi has take is going forward with producing electrical and diesel based engines so that the longevity and affordability of these vehicles will extend the product life cycle. It has been show that these to engine styles extend the life of the vehicle and with that the investment of the vehicle is more bang for the dollar to he average consumer that is looking for a quality investment, and not a stockpile of metal that will need to be resold to the dealership when the miles get high, and will take a finances will take a sharp turn because of this factor.
So with that vehicles in America and worldwide not mattering if you’re talking Europe, the Caribbean Islands, China, Canada or Mexico the car maker is looking out for the investor in their vehicles and with the innovation for extended life to their products, safety and creativity in design, and luxury the auto brand maker will continue the company’s rapid growth in all markets they penetrate. Sustainable, superior financial strength is underpinned in particular by continuously optimizing process and structures, realizing reduced costs and ensuring systematic investment management.
A high level of self-financing safeguards investments, preserving the ability of Audi AG to innovate and act. The aim is continue financing investment from self generated cash flow. ” This will be the backbone of the company for progression and distancing itself from competitors by being able to provide luxury, innovation, and creativity for the consumer in a locations of the world that the company serves.
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