Product Life Cycle Theory
In 1970s Vernon proposed the Product Life cycle theory
- Product first made in the US
- Later produced in other developed nations
- Finally, produced in developing nations and exported to the US and other developed nations .
- Valid for the 1950s-1970s period when US was a dominant economic power but not so now.
- Increased globalization and integration of the world makes this theory less valid. Now most products are introduced simultaneously in all major world markets.