MNM3711
Assignment 2
Semester 2 2025
Due October 2025
, MNM3711
Assignment 2
Semester 2 2025
Due October 2025
Question 1
Europcar is in the process of introducing a new product to the international
market. Explain in detail the five (5) stages of the international product life cycle
and practically apply each stage to Europcar.
The International Product Life Cycle (IPLC) describes how a product evolves as it
enters and spreads through global markets. It helps firms anticipate competition,
manage costs, and adapt strategy over time (Vernon, 1966). The five stages are
explained below, with direct application to Europcar.
Stage 1: New Product (Innovation)
At this stage, the product is created and launched in the home market. Costs are high
because of R&D, marketing, and piloting. Sales are limited as the product is still proving
itself.
Application to Europcar: If Europcar develops a long-term electric vehicle (EV)
subscription, it would first pilot this in established markets such as France or the UK.
These locations have stronger EV infrastructure and consumer demand for sustainable
mobility, making them ideal for initial testing.
Assignment 2
Semester 2 2025
Due October 2025
, MNM3711
Assignment 2
Semester 2 2025
Due October 2025
Question 1
Europcar is in the process of introducing a new product to the international
market. Explain in detail the five (5) stages of the international product life cycle
and practically apply each stage to Europcar.
The International Product Life Cycle (IPLC) describes how a product evolves as it
enters and spreads through global markets. It helps firms anticipate competition,
manage costs, and adapt strategy over time (Vernon, 1966). The five stages are
explained below, with direct application to Europcar.
Stage 1: New Product (Innovation)
At this stage, the product is created and launched in the home market. Costs are high
because of R&D, marketing, and piloting. Sales are limited as the product is still proving
itself.
Application to Europcar: If Europcar develops a long-term electric vehicle (EV)
subscription, it would first pilot this in established markets such as France or the UK.
These locations have stronger EV infrastructure and consumer demand for sustainable
mobility, making them ideal for initial testing.
