The product life cycle begins with the development of a product, and ends in its replacement by something better.
Some high-quality products may have life cycles lasting one or two decades.
From a geographical point of view there is evidence that products at different stages of the cycle are associated with different locations.
Initial growth is slow.
Efforts are made to improve quality and reliability, causing frequent changes in production processes and product
Production relies heavily on scientific and engineering skills.
Thus, production locates close to the firm’s HQ and R&D operations.
The product has been perfected.
Sales grow rapidly and are directed towards lowering costs.
The dispersal of production to peripheral branch plants begins.
The importance of skilled labour and technical inputs diminishes.
Costs are lowered by mass production and the replacement of skilled by semi-skilled labour.
The locational preference for peripheral regions, where labour costs are low, is typical of this stage.