According to the Product Life Cycle, it is suggested that before a product has the opportunity to decline in popularity, that it is moved to another country. However, there are products that are better off being sold and manufactured domestically than elsewhere. Products that are most likely to be better sold and manufactured domestically are automobiles. Products that are most likely to be sold overseas are technological like televisions and computers. Reasons why a company may find it best to manufacture and sell domestic items or products to be feasible, vary in many ways. One justification is due to costs being cheaper. For instance, manufacturing a car in ones home market may be a very expensive process. Turkey is a market that has been
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Transport costs are dynamic so it ranges from “fuel prices, new infrastructure (e.g., a widened Panama Canal cutting export distances), risk factors (e.g., ship piracy increasing security costs) and climate changes (warming makes the Northwest Passage a viable option).” (IB, 577) The idea is that the “more distant the product, the higher the transportation costs and the higher those are relative to production costs, the higher it is for companies to develop viable export markets.” The Soft-drink industry would have to include both the transportation costs and a manufacturing cost that is of high percentage. Generally, the total cost of exporting the product would be a waste of time since they would generate little …show more content…
A company that may find it best to manufacture and sell products overseas is Dell. Dell is a computer company who’s profit and shares have dropped significantly since it’s prime. As of “September 2007 Dell announced that it would take this channel strategy overseas, selling computers through China’s largest electronics retailer.” (Chopra) In the early 1990s Dell products were available for purchase at stores like “Best Buy, Costco, and other retailers, but the company stopped this distribution in 1994 due to low profit margins.” Dell even opened a store in Dallas where customers could encounter with their computers or other products. However, the Dell’s eventually had to be ordered online rather than taken them home with buyers through the purchase of the
Transport costs are dynamic so it ranges from “fuel prices, new infrastructure (e.g., a widened Panama Canal cutting export distances), risk factors (e.g., ship piracy increasing security costs) and climate changes (warming makes the Northwest Passage a viable option).” (IB, 577) The idea is that the “more distant the product, the higher the transportation costs and the higher those are relative to production costs, the higher it is for companies to develop viable export markets.” The Soft-drink industry would have to include both the transportation costs and a manufacturing cost that is of high percentage. Generally, the total cost of exporting the product would be a waste of time since they would generate little …show more content…
A company that may find it best to manufacture and sell products overseas is Dell. Dell is a computer company who’s profit and shares have dropped significantly since it’s prime. As of “September 2007 Dell announced that it would take this channel strategy overseas, selling computers through China’s largest electronics retailer.” (Chopra) In the early 1990s Dell products were available for purchase at stores like “Best Buy, Costco, and other retailers, but the company stopped this distribution in 1994 due to low profit margins.” Dell even opened a store in Dallas where customers could encounter with their computers or other products. However, the Dell’s eventually had to be ordered online rather than taken them home with buyers through the purchase of the