As name suggest production concept focuses on manufacturing more products to achieve the management objective of low price per unit. This concept says that consumers will buy the products if their availability in the market is high at lower price means product price,cost and distribution are the core factors to increase market share of the company. This concept is one of the old concept which guides seller.
The production concept is still not out dated, it can work well for companies in these two situations.
1 – When the demand of product is high than supply in this case management follow production concept for increasing the production capacity to meet the required demand of consumers.
2 – When the management want to reduce the cost of the product to make it affordable for consumer so they can buy it for nominal price.
China manufacture products at mass level to achieve low cost in order to offer products at lower prices in the International market. Although, consumer buy China products when it enter into the market for the first time but in most of the cases they never buy it again due to missing parameters of quality, attractiveness and durability.