Why do businesses seek international markets?

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Product life cycle

Why do firms want to extend the product life cycle?

  • To maximise sales revenue from a particular product
  • To reduce the risk of creating and selling a new product in the market.

How do firms extend the product life cycle?

  • Backward innovation (VW Beetle in Mexico)
  • Extension strategies (marketing strategies).

What is backward innovation?

Backward innovation is when a business markets an existing product in a developing country, in order to increase sales revenue from this saturated product.

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