mkcting

In the new global economy, new product development has become a central issue for not just multinational companies but also for small multinational companies, thus one of the major challenges for SMEs is to save their products from quickly reaching the decline stage of product life cycle. This essay will first critically analyze the challenges of International NPD and product life cycles in relation to SME, next it will closely examine the relationship between the two issues and finally the essay will focus on marketing strategies for SMEs in order to cope with these two issues. Therefore, the essay critically analyzes and illustrates marketing strategies for SMEs in order to successfully overcome the challenges of international NPD and product life cycles.

Over the past three decades that is since 1980s the process of NPD is rapidly evolving which is well illustrated in the fig. 1.

One of the key reasons for this change in the process of NPD is globalization and rapidly developing technology (Crawford and Benedetto, 2008). Also the process of global NPD which began with simple elements like NPD process and NPD strategy has went on to incorporate new elements like Global trend and Global companies, Global innovation (Harmonization strategy) and Global product strategy (Standardization and Adaptation) (Fig.2).

The changing international product life cycle is also responsible for this changing process of Global NPD. Moreover this changing IPLC has also been one of the major challenges faced by SMEs while developing new product. Majaro (1986) states that in yesterday years when a product used to reach the decline stage the companies used to immediately export it to another country thus helping the product to sta...

... middle of paper ...

...vercome the two challenges.

Fig.7 Framework forming the foundation for all international NPD strategies; in relation to MNEs and SMEs. Adapted from Brentani, Kleinschmidt & Salomo, 2010, p.146.

To conclude, this essay has critically addressed two significant issues of changing IPLC and the expensive but essential process of NPD in relation to SMEs clearly stating that the two issues are interrelated. Thereafter, four strategies are recommended from which SMEs can choose any one strategy in order to successfully deal with the two issues but they need to develop these strategy upon the foundation framework. Overall the evidences given in the essay clearly indicate that the recommended strategies along with the foundation framework will help the SMEs to not only overcome the challenges but also help them in gaining a competitive edge over its rivals.