|
INTRODUCTION |
GROWTH |
MATURITY |
DECLINE |
Production location |
In innovating (usually industrial) country |
In innovating and other industrial countries |
Multiple countries |
Mainly in developing countries |
Market location |
Mainly in innovating country, with some exports |
- Mainly in industrial countries
- Shift in export markets as foreign production replaces exports in some markets
|
- Growth in developing countries
- Some decrease in industrial countries
|
- Mainly in developing countries
- Some developing country exports
|
Competitive factors |
- Near-monopoly position
- Sales based on uniqueness rather than price
- Evolving product characteristics
|
- Fast-growing demand
- Number of competitors increases
- Some competitors begin price-cutting
- Product becoming more standardized
|
- Overall stabilized demand
- Number of competitors decreases
- Price is very important, especially in developing countries
|
- Overall declining demand
- Price is key weapon
- Number of producers continues to decline
|
Production technology |
- Short production runs
- Evolving methods to coincide with product evolution
- High labor input and labor skills relative to capital input
|
- Capital input increases
- Methods more standardized
|
- Long production runs using high capital inputs
- Highly standardized
- Less labor skill needed
|
Unskilled labor on mechanized long production runs |