With mostly saturated markets in developed countries, the markets of the emerging economies constitute the major growth opportunity for most multi-national corporations (MNCs) today. But tapping into the potential of these markets is no easy task. Simple export strategies with little or no responsiveness to local needs failed numerous times. MNCs often have the wrong mindsets to be successful in these markets, assuming these markets will go through the same process of development as the western markets, only ten or twenty years behind. Product policies therefore concentrate on dumping old and outdated products in these markets. Many MNCs had problems with this way of approaching emerging markets, as they have unique requirements that need to be considered. Backward innovation, the deliberate simplification of existing products, can be seen as one strategy that responds to those needs and can be very successful in these emerging markets. Backward innovation falls back on using existing, but modified products; a successful use of this strategy may well be a way to extend the life of a product that finds itself already in the maturity or declining stage of its life cycle in its home market.
To examine how backward innovation is used in global (particularly in emerging) markets and how successful it is in extending the life of a product will be the main focus of this paper.
Inhaltsverzeichnis (Table of Contents)
- List of abbreviations
- Methodology and structure
- Introduction
- Problem set and essay questions
- Methodology and structure
- International trade and the product life cycle
- Strategies for mature and declining products
- The international product life cycle
- Market potential of emerging economies
- Extending product life cycles through backward innovation
- Basic underlying concepts
- Case examples of backward innovation strategies
- Critical evaluation
- Backward innovation
- Beyond product simplification
- Conclusion
- References
- List of abbreviations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines the use of backward innovation as a strategy to extend product life cycles globally, focusing on emerging markets. It explores the rationale behind backward innovation strategies, the concept of the product life cycle, and common strategies used to prolong the life of products in the maturity and decline phases.
- The international product life cycle and its relevance for MNCs in emerging markets.
- The potential of emerging economies, specifically the BRIC countries, for MNCs seeking to extend product life cycles.
- The concept of backward innovation as a strategy for adapting products to the needs of low-income consumers in emerging markets.
- Case studies of successful backward innovation strategies, such as the Volkswagen Beetle and Nokia mobile phones.
- Critical evaluation of backward innovation and its potential for going beyond simple product simplification.
Zusammenfassung der Kapitel (Chapter Summaries)
The paper begins with an introduction to the problem set and research questions, outlining the importance of emerging markets for MNCs and the challenges of adapting products to their specific needs. Chapter two delves into the concept of the product life cycle, exploring strategies for managing products in the maturity and decline phases. It also introduces the international product life cycle and the potential of emerging economies for MNCs.
Chapter three focuses on backward innovation as a strategy for extending product life cycles in emerging markets. It discusses the underlying concepts of backward innovation and provides case examples of successful applications. Chapter four critically evaluates backward innovation and explores potential extensions beyond product simplification.
Schlüsselwörter (Keywords)
The key terms and concepts explored in this paper include backward innovation, product life cycle, international product life cycle, emerging markets, BRIC countries, MNCs, product adaptation, and market expansion.
- Quote paper
- Anonym (Author), 2006, Backward innovation - An opportunity to extend product life cycles on a global basis?, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/77341
