Page 176 - International Marketing

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178 International Marketing BRILLIANT'S

 They were not aware of that product or technology.
 They followed the restrictive trade policies so far.
 They were not having sufficient financial capabilities.
 After importing that product for some time, they started finding
low-cost manufacturing options to cater to the need of their do-
mestic consumers.
 In South Korea, Samsung and LG started producing mobile phones
cheaper than that of Motorola and Sony.
 Then they sell this cell phone to USA and other advanced coun-
tries because of low-cost advantages.
 At the end, they are either the 'low cost market leader' of that
product or the 'global sourcing hub' of producing that product in
their country.
Thus, less developed countries are first the importer, then imi-
tator of that technology then global lost cost market leader for
that product.
Unit Produced

STAGE 1 STAGE 2 STAGE 3
New product Maturing product Standardized
product

Fig.: IPLC Less Developed Countries
Pros
The model helps organizations that are beginning their international
expansion or are carrying products that initially require experimentation to
understand how the competitive playground changes over time and how
their internal workings need to be refitted. The model can be used for
product planning purposes in international marketing.