'Re-defining the International P.L.C.
- Deception or Diagnosis?'
Z. Dauhn
MSP_7347
November 12, 2003
Abstract
This paper assesses the current status of the PLC, both conceptually and its applications, in the context of changes in the international marketplace, for example the drastic shortening of 'time to market.' The paper considers other approaches to the international PLC, including incremental and evolutionary cycles. There is a special focus on the positioning of global brands in this scenario, together with a number of topical illustrations from brand companies. The Paper concludes by proposing two models in place of the traditional PLC.
Introduction
This paper aims to review the impact of recent developments on the PLC in the international market place, and to assess how far it is still a worthwhile concept; some implications for management in the light of this reassessment are also discussed.
Accelerating Market Entry
The global move towards reducing the 'time to market', and thereby to shorten development cycles, has been caused by the interaction of a set of economic, market, technological and managerial pressures. This accelerated product development can best be understood by citing some of these pressures. Market factors: slow world growth and new industrial competitor nations leading to rapid emulation of competitors' products, globalization of markets, near simultaneous product launches around the world and cost pressures. Technological factors: dramatic shortening of life cycles in electronics, accelerated global diffusion of technology, difficulty of sustaining technological advantage, and the 'shift' to incremental innovation. Managerial and competitive factors: include the pressure ...