Question

How do businesses use the PLC to strategize for international market expansion?

a. What are the implications of cost-reduction strategies for outsourcing?

Answer 1

1) As we know that Product Life cycle is a process which shows various stages through which a particular product must passes . These are introduction, growth, maturity and decline. A product might be launched firstly to the domestic market then on growth phase , it might be introduced into a foreign market to tap the demand from customers .

Many times, a company searches new markets when its product are getting low or a continuous demand from the local market . It will scale up the sales and cost of business operations and enhanced name in the marketplace.

2) Outsourcing is a process through which organizations subcontract its functional activities to get cost and other benefits. For example: A company might outsource a manpower consultant to hire the people for its some of the overseas business . It makes it free to work on core competencies like product manufacturing and its marketing .

Many times, it provides competitive advantage in the marketplace in terms of low cost of business operations, timely execution, accountability, focus on specialized domain etc.

There is an another side of outsourcing with reduced cost like safety, quality and privacy concern along with cost of litigation due to low quality or any damage to the other stakeholders.