Product Life Cycle

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Product Life Cycle
Name
GBM/381
December 5, 2011
Rolando Sanchez

Product Life Cycle
“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,

the 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

is 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

with 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

markets 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

overall 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...
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