UGF Lecture 4

Management > Global Firm > Vernon

Vernon

Vernon's product lifecycle (PCM) of 1966 provides insights into how, when and why firms become MNEs. His study was based on observations of US firm behaviour 1945-65.

There are three stages to the lifecycle:

1. Product development (innovation stage)
2. Mature product stage
3. Standardised product stage

1. Product development stage

2. Mature product stage

3. Standardised product stage

Changes