International Product Life Cycle Theory

Yanko Petrov, CEO of a Bulgarian based dairy products manufactuer is gathering information to consider foreign direct investment and a location for their new product. Since this is a new product (special kind of feta cheese) and is not being sold anywhere, I would recommend following 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 company to reduce production cost. It is always wise to find a country that can produce the product at the lowest possible cost. Finally, the standardized 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 great products but are unable to compete and maintain high profit margins which eventually causes a company to fail in that product.