Category: Product Development

As for many organizations, the challenge of coming up with a new product lies with the product development department. In this case the name of the new product shall be Collabo. Collabo is a unique laptop with phone features that allow the user to make and receive calls, write short messages and besides, perform all other functions of a normal computer. In case of a phone call, the user receives it via its earphones.

The gadget has an alternative source of power so that even those from rural areas without electricity can be able to operate it easily. This implies that the Collabo product meets the United Nations conventions on environment in line with the making use of the natural sources of energy such as the sun that does not involve so much processing that emits gases that are harmful.

It is intended to cut the costs of buying two separate gadgets which might be too expensive for most of the consumers. This is made possible through a combination of both the phone and laptop features in one gadget and then priced as a unit.

As for this product, the market segmentation variable that will be used is the geographic variable. Geographic segmentation entails classifying the market based on age, occupation, income and religion (Burrell, 2004).

However, in this case, we shall classify the market while laying emphasis on age and income of the consumers. This method of segmentation is the best for Collabo because it involves a lot of technological applications that require young and ambitious people. In addition, any company that is searching for a large market, then the young population shall be the option to go for.

This is because in many countries, the population of the youths is more than that of the old people. Consequently, there are more youths in the labor market than their old counterparts. Besides, these young people have little disposable income and most of them hence cannot afford to buy a phone and a laptop separately and thus the need for this new product.

Specifically, the target market for Collabo shall be the young people of the age bracket 20 to 28 years old. Most of the people in this bracket are college and young employees who are aggressive and fast in embracing a new technology. In addition, they get a yearly income of $ 10,000 to $ 40,000 on average depending on whether they are students or newly employed.

This means they can only buy a product that does not stretch their disposable income to a larger extent. With the emergency of the current trends in business where people make transaction over the web, it is prudent for people to make use of efficient gadgets that facilitate business activities.

It is worth noting that the youths are so much into social networks such as Facebook and Twitter than any other sites. According to psychologists, people in this age bracket are into intimacy versus isolation and consequently, most of their social needs are met through chatting and befriending people on these sites.

They spend most of the time on the internet because it quickly avails their wants by just a click on the mouse. It is with this concern on the behavior of customers that the Collabo product shall be invented so that it suits the needs of its target group.

Moreover, the product (Collabo) shall be of benefit to the market because of its relatively low price, thus saving the real income of the consumers (Kotler, 2001). Besides, it saves energy as it is only one gadget’s battery that is in use compared to the case of two separate gadgets with different batteries.

In addition, most of the assignments are sent by the lecturers over the internet to the students. This implies that those who have regular access to the internet get the assignments in time than those who do not have. Furthermore, the students are required to type and submit typed work for marking and also to create references for their work. All these requirements are time consuming and tedious to conduct. Hence, when all the above needs are put into consideration, the Collabo becomes the best product for them (students).

Looking at the market prices, a standard laptop goes for $ 500 but Collabo with its inbuilt laptop and phone features, shall be introduced at a price of $ 425 because we want to establish a presence in the market while keeping check on the quality of our product.

When a company introduces a new product in the market, it ventures into advertisements, giving free samples and also not forgetting to offer the products at a relatively lower price in order to attract a large customer base. It is worth noting that in as much as the new product, Collabo enters the market, there are other relatively similar products in the industry. So, the mangers have to select the price of this product diligently to keep up with the base of the market.

The pricing strategy that shall be employed is the cost-based pricing with emphasis on the product features. This is meant to cover the cost of the features and the profit margins so that the firm can be efficient in its operations. The other things considered in this pricing strategy is the technology employed in producing the product and the labor.

If the technology is imported, then the prices of the products go high. However, as for Collabo, the technology that shall be used is going to be sourced locally while also making use of local labor. This translates to low prices for Collabo.

The objectives that shall be met include satisfying the consumers’ needs and remaining competitive in the market. Collabo satisfies the consumers’ needs through convenience in providing all services of a phone and laptop in one gadget.

On the other hand, the patent rights that shall be acquired will enable the firm to continue enjoying its innovation over a long time and this facilitates a competitive edge in the market.

It goes without saying that the product is worth this price because it is an initial price that is meant to attract more and make the product relatively affordable. Besides, it covers the cost of producing it.

Following the product life cycle (PLC), at the introductory stage, the product will be charged for $ 425 as we endeavor to gain access into the market. The lower price shall serve both as a pricing strategy and a package of attraction. At the growth stage, we shall increase the price to $ 450 to cover the costs of advertising and sales.

This is a stage when the firm has gained some market presence and hence has some royal customer. However, at maturity stage, we will charge $ 500 to keep up with the market prices and at this point many customers would have embraced our products. Finally, at the decline stage, we shall lower the price to $ 450 if we find there is need for us to divest the product from the market. This will depend on the customer demand for the Collabo.

Reference List

Burrell, T. (2004). Marketing strategies. New York, NY: Russell Sage Foundation.

Kotler, P. (2001). Principles of marketing. New York, NY: Pearson.

The article overview

The article under study written by Cooper et al. (2001) is entitled “Portfolio Management for New Product Development: Results of an Industry Practices Study”. It dwells upon the importance of the proper portfolio management and it also provides an analysis of the most effective new product portfolio practices.

The major goals of the present study are as follows: to define the role of portfolio management, to point out the most popular techniques and define which of these dominate, to describe the portfolio methods mentioned, to assess the practices of “the best performers” (Cooper et al., 2001, p. 362).

Cooper et al. (2001) claim that portfolio management is very important for business. The researchers provide eight reasons articulated by seniors.

These reasons are as follows: portfolio management helps to maximize return, to remain competitive and increase sales, to allocate resources properly, to draw a link between projects and business strategy, to remain focused (this helps to allocate resources), to achieve balance, to prioritize projects, to become more objective while selecting projects.

Cooper et al. (2001) report that financial methods dominate as the majority of people rely on these methods while working out their product portfolios. The authors also mention that the methods of business’s strategies are also very important.

The researchers mention two other methods which are less popular: bubble diagram (it is often referred to as portfolio maps), scoring models and checklists. These methods are often ignored. However, Cooper et al. (2001) have found that it is essential to use a mixed approach.

In other words, it is important to use the combination of the methods mentioned above. The researchers stress that it is incorrect to rely on financial methods or the method of business’s strategies. It is important to check the data obtained with the help of bubble diagram, scoring models and checklists.

The researchers conclude that portfolio management is one of the best new product practices if the right methods are used. This practice helps companies to become more competitive in the rapidly changing environment.

Key points

Cooper et al. (2001) provide an analysis of the portfolio management effectiveness. The researchers report that this practice helps companies to become more competitive as they will be able to select their projects objectively, they will be able to allocate their resources properly, they can also tie their new projects to the overall strategy of the company.

It goes without saying that this analysis can help seniors to pay more attention to the use of this practice. Notably, the researchers also point out that there are certain challenges which seniors may face. For instance, Cooper et al. (2001) note that sales managers and the majority of employees are overwhelmed with developing their projects, so they do not see the importance of portfolio management.

They simply do not have time to develop a thorough plan, but focus on particular projects. However, the researchers also point out that the benefits of the practice implementation are worth the efforts. The researchers provide particular data which prove their assumptions.

Of course, these data are really encouraging. One more important finding of the research is that the researchers have come to the conclusion that the most effective method of portfolio management is the mixed method. This mixed method should combine financial method, the method of business’s strategy and bubble diagram, scoring models and checklists.

Cooper et al. (2001) provide a description of these methods defining their advantages and downsides. Importantly, the researchers comment upon the best businesses, i.e. they construct the best models of portfolio management. Finally, the researchers provide several “implications for management action” (Cooper et al., 2001, p.377). Basically, the authors provide a helpful piece of advice.

They stress the importance of portfolio management, they note that it is crucial to use the mixed method, they underline the advantages of each method which can be used effectively.

Admittedly, the researchers report on the most important issues concerning portfolio management. Their findings and conclusions can be taken into account by seniors. The information provided can help many companies remain competitive and develop new products effectively.

Follow-on research

Admittedly, many researchers analyzed the effectiveness of portfolio management. Interestingly, Cooper et al. (2004) focus on the effectiveness of portfolio management in the new products development process. The researchers provide particular examples of companies using certain strategies of portfolio management.

It is necessary to point out that the researchers do not provide the same patter on practices as they articulated in Cooper et al. (2001). The researchers concentrate on the method of business’s strategies. Interestingly, Cooper et al. (2004) conclude that the use of strategic basket is proved to be the weakest method. This finding is supported by particular examples.

The researchers also provide certain pattern to escape difficulties in portfolio management. One more research deals with the effectiveness of a particular method of portfolio management in the development of pharmaceutical products (Blau et al., 2004).

The researchers claim that bubble-chart-based method can be really effective and it can be used by seniors to develop successful plans. The researchers provide particular examples of this method’s effectiveness.

However, even though, positive results were achieved, it is necessary to add that researchers were focused on that particular method. It is important to note that the researchers compare so-called intuitive method and bubble-chart-based method.

Nonetheless, the results could be better if the researchers used the mixed method involving financial methods, strategic method and checklists as articulated by Cooper et al. (2001).

However, it is necessary to admit that the both sources (Cooper et al., 2004; Blau et al., 2004) provide valuable information based on particular examples. These articles supplement the article by Cooper et al. (2001) and help to better understand the effectiveness of different methods used in portfolio management.

Applications

It goes without saying that the article under consideration provides valuable information concerning portfolio management which is one of the most effective practices in new products development. Admittedly, the researchers analyze the most effective methods which can help companies develop their detailed and effective portfolios.

Thus, the mixed method suggested by Cooper et al. (2001) can help companies to allocate their resources more effectively and select their projects more objectively. Of course, seniors can use the methods in accordance with their company’s strategies and objectives.

More so, the researchers point out possible challenges that seniors can face. Notably, the researchers provide arguments which can help seniors to encourage their employees to pay more attention to portfolio management.

Of course, this will require certain changes in some business processes as employees will need to have more time to work on portfolios rather than work on particular projects.

Reference List

Blau, G.E., Pekny, J.F., Varma, V.A., Bunch, P.R. (2004). Managing a Portfolio of Interdependent New Product Candidates in the Pharmaceutical Industry. Journal of Product Innovation Management, 21, 227-245.

Cooper, R., Edgett, S., Kleinschmidt, E. (2001). Portfolio Management for New Product Development: Results of an Industry Practices Study. R&D Management, 31(4), 361-380.

Cooper, R., Edgett, S., Kleinschmidt, E. (2004). Benchmarking Best NPD Practices – II. Research-Technology Management, 47(3), 50-59.

Summary

For any manufacturing industry to make any meaningful success in the competitive market, proper management of the new product development process, is a must to ensure the correct products are rolled to the market at the right time at a reasonable cost otherwise the industry has to make losses. Production is a multi-factorial process involving much planning and management which must be done with the aim of maximizing product fit with market need, shorten development process, and minimize development costs.

Maximizing Customer’s Needs

Maximizing customer’s needs ought to be the first priority and this must be achieved with extensive market study and research. This will enable delivery of not only customer requirements but also at an affordable price. Apple’s Newton Message Pad failed due to failure to meet customer’s need while on the other hand Phillips failed due to production of both very sophisticated and expensive product.

Massive losses can be minimized by cutting down on development time society that the products hit the market at the optimum time neither too early nor too late. Bringing products to the market brings customer loyalty and early market capture while late entry may find that market has already been taken. In addition production costs are likely to be cut in the process though rushing may compromise on quality of the products. The whole process of development must be both effective and efficient for profit maximization.

Product development

Product development takes place in stages which may occur either sequentially or concurrently and it is the work of production managers to make sure that product design, concept development and manufacturing in every stage is coordinated for optimum results and also for early detection of flaws or feasibility.

Project championing is important in that project managers can take the challenges and responsibility of the project. Project managers are better positioned to integrate communication and cooperation from different branches and levels of production. They can provide the drive and the motivation needed to take the risk in the project. However precaution must be taken to ensure that too optimistic managers do not push projects further into losses even when it is evident the project is failing.

Development process will bear much result if both customers and suppliers are involved in the development process. Most manufacturing industries involve customers in the manufacturing process by releasing semi finished or beta products to access the response of the customers. Suppliers are also involved in order to make sure that different supplies are incorporated in the manufacturing process whilst at the same time checking on timeliness and cost.

Improving new product development process can be made through techniques such as stage gate processes whereby the viability of the whole project is rigorously checked at every level. Design for manufacturing involves techniques such as making of prototypes, use of Computer-aided design (CAD) to build and test new design before the actual manufacturing. Computer aided manufacturing enhances quality product manufacturing by use of computer controlled automated production.

Conclusion

Measuring new product development performance is important in ensuring that the goals previously set are actually met and making timely corrections when the need arises. By use of various product development process metrics different dimensions of the firm’s potential to complete a given project successfully as per previously set targets are analyzed. All this concepts, stages and processes are important in ensuring effective new product development process.

Introduction

Since its inception in 1969, Stew Leonard’s has positioned itself optimally in the United States’ grocery store industry by offering diverse food products. The firm has established four supermarkets, which are located in New York and Connecticut.

The firm’s product portfolio is comprised of dairy products, meat, wine, and juice. In addition, the firm sells its products to over 300,000 customers every week.

A workforce of over 2,000 employees necessitates the company’s operations. Stew Leonard’s has had exemplary performance over the past decades, as evidenced by its listing in the Guinness Book of World Records. This recognition was due to its sales per unit area in the category of all single food companies in the US.

Despite its superior performance over the past four decades, Stew Leonard’s is experiencing pressure from the external market environment such as change in consumer behavior and intense competition. Thus, the firm’s top management team has an obligation to respond to the prevailing market trends.

One of the most effective approaches that the firm should consider is new product development. This paper illustrates the critical aspects that Stew Leonard’s should consider in developing and introducing the new product.

New product

In line with its quest to offer diverse nutritional food products, it is essential for the firm to consider the introduction of a new snack product. The product should be produced from high-energy natural ingredients such as different whole grains, milk, and vegetables in order to meet the customers’ tastes and preferences.

In order to improve the ability of the new product to provide customers with the needed energy within a short duration after consumption, it is imperative for the firm to ensure that the snack product is easily digestible and absorbed by the body.

In a bid to improve the snack’s capacity to provide the needed energy, the firm should incorporate some of the ingredients used in the production of energy drinks such as ephedrine, ginseng, ginkgo biloba, taurine, carnitine, inositol, and creatin. These ingredients will meet the customers’ energy requirements and enhance their well-being.

Feasibility and profitability

By introducing this product, Stew Leonard’s will greatly improve its performance. The feasibility and profitability potential of the new product is fostered by a number of factors.

Food consumption

Food consumption habits in the US were affected by the 2008 economic recession. Some market segments such as the private labels were least affected by the recession. During the recession, private labels’ prices varied between 20% and 40% as opposed to the branded equivalent.

However, the trend has been reversed by the improvement in consumer confidence in the country’s economic performance over the past few years.

A study conducted by the Business Monitor International (2014) records that per capita “food consumption is expected to rise by a compound annual growth rate of 2.6% between 2013 and 2018” (par. 5).

Sustained economic performance will spur private consumption expenditure, which is critical in promoting profitability within the retail sector. Business Monitor International (2014) argues that private consumption expenditure is expected to grow by 2.2% between 2014 and 2018.

By introducing the new product, Stew Leonard will be in a position to benefit from the improvement in the consumers’ purchasing power.

Change in consumer lifestyle

Consumers in the US appreciate the consumption of healthy food products. This trend has arisen from an increase in incidents of diseases associated with poor eating habits such as obesity. Currently, consumers are shifting to the consumption of healthy traditional snack foods.

However, their preference mainly lies in the snack foods perceived to have high health benefits. The feasibility of the new snack product will be improved by the view that snacking has become a common trend amongst Americans. The NPD Group forecasts that snacking between main meals will increase by 5% to over 86.4 billion eating over the next five years (Prepared Foods, 2014).

Product diversity

By introducing the new snack product, the firm will enhance the attainment of the diversification strategy. Thus, Stew Leonard’s will be in a position to enter a new market segment, viz. the athletic market segment, which will be promoted by the unique product features.

Competitive advantage

Introducing the new product will improve Stew Leonard’s competitive advantage significantly. The competitive advantage will arise from the view that the firm expects the product to attract new customers due to the associated health, energy, and nutritional benefits.

The health, energy, and nutritional benefits of the new snack will attract diverse customer categories. This aspect will lead to an increment in the firm’s sales revenue, hence its financial sustainability.

Due to the attained level of financial sustainability, Stew Leonard’s will be in a position to finance diverse strategic aspects such as continuous product improvement, hence sustaining its competitive edge in the US food industry.

Recommended mass media and social media channels

After successful development of the product, it is imperative for Stew Leonard’s to create sufficient awareness on the existence of the new product in the market. Creating awareness is fundamental in an organization’s quest to improve the consumers’ purchase decision.

In a bid to create optimal market awareness, Stew Leonard’s should use the advertising technique, which entails mass media and social media channels.

Mass media

In its effort to create adequate market awareness through advertising, the firm should consider two main mass mediums, which include print media and broadcast media. The core broadcast mediums that the firm should integrate include radio and television.

The firm should develop attractive advertising message in order to improve the likelihood of influencing the target customers. Moreover, the firm should create awareness using different print mediums such local newspapers, magazines, and brochures.

In selecting the mass mediums, it is imperative for Stew Leonard’s to identify the most well established media houses in order to increase the likelihood of creating successful market awareness.

Social media

Market awareness should also incorporate social mediums. The core mediums that the firm should take into consideration include Facebook, Google+, and YouTube.

Justification

The choice of the print and broadcast mediums will enable the firm to create optimal market awareness due to their capacity to reach a large number of potential customers in the US given their market penetration. Using television and radio will ensure that consumers in different regions receive the intended message simultaneously.

Through these mediums, the firm will create awareness to the older customer group. Conversely, the choice of the three social mediums will enable the firm to reach the younger generation, which is increasingly becoming techno savvy. Furthermore, the two mediums have become critical sources of product information.

Consequently, consumers are increasingly using the two mediums in searching information on different products. Moreover, social mediums are characterized by a multiplier effect due to the ‘word of mouth’ effect.

Pricing structure

In order to enhance its competitive advantage through new product development, it is imperative for Stew Leonard’s to ensure that the product penetrates the market successfully. Price is one of the key determinants that the firm’s management team should consider in order to stimulate the rate of market penetration.

The price structure adopted should influence the consumers’ purchase intention. The consumers’ purchasing decision is subject to the set price point.

The firm should adopt the introduction pricing structure such as the penetration pricing strategy. This strategy will allow the new product to penetrate the market aggressively. The decision to adopt this pricing structure arises from the view that most customers already understand the benefits associated with healthy eating habits.

Stew Leonard’s has developed sufficient economies of scale, hence its ability to set the price of the new product at a relatively lower point as compared to competitors. By adopting this strategy, the firm will sacrifice short-run profits.

However, Stew Leonard’s will develop an efficient market position, which will be a critical source of the firm’s competitive advantage. The strong market position will originate from the capacity to maximize the sales revenue due to the widespread market acceptance.

Additionally, the penetration-pricing strategy will act as deterrence to potential competitors.

Customer relationship management

The high profitability potential in the US food industry has increased its attractiveness to investors. Furthermore, the existing firms are increasingly diversifying their product portfolio in an effort to exploit the market opportunities.

Despite this trend, Stew Leonard’s can enhance the dominance of the new product by developing an effective customer-relationship management system. The CRM system should be aimed at entrenching product loyalty.

One of the way through which the firm can achieve this goal entails integrating point of sale systems, which involves high-tech software that has the capacity to capture the customers’ details. Through this technology, the firm will be in a position to offer unique customer experience, for example, by designing loyalty programs.

Symons (2014) affirms that on average, “13% of disgruntled consumers will tell at least 20 people about it” (par. 2). The automated POS will enable the firm to customize its service delivery by generating automated messages such as emails informing customers on different product aspects such as product improvement.

Additionally, the POS will enable the firm to track the customers’ purchase history such as product inquiries. This aspect will improve the likelihood of influencing the consumers’ intention to purchase the product, for example, by designing attractive loyalty programs.

Inherent risk

Despite the fact that the introduction of the new product will present an opportunity for the firm to maximize its sales revenue and profitability, it is imperative for the firm’s management team to appreciate the existence of inherent risk.

One of the inherent risks that might affect the development of the new snack product entails change in consumer preferences. According to Ogawa and Piller (2006), consumers are characterized by heterogeneous product demands, which lead to micro-segmentation of product categories.

Due to change in consumer tastes and preferences, it is difficult for the firm to undertake precise forecast on the sales revenue expected to be generated from the sale of the new product. The ultimate effect is that the commercialization of the new product will be affected adversely.

This risk might arise if the firm does not have adequate understanding of the customers’ needs. Therefore, in a bid to minimize such risk, it is imperative for the firm to undertake continuous market research. The firm should use the findings of the market research to adjust its product development plan.

Risks of not launching

The food industry is undergoing a remarkable transformation, which is arising from macro-environmental factors such as change in consumer behavior. In order to align with the changing market trends, it is imperative for firms to invest in extensive product innovation programs.

The programs should focus on improving the firms’ market dominance through new product development. Failure to invest in new product development is a major risk that might affect the firms’ long run existence.

The risk arises from the view that the ability of a firm to generate and sustain growth in sales revenue, hence its financial sustainability is hindered.

The problem is further exacerbated by the view that the firm’s market dominance might be crowded-out by the competing entities. Therefore, the firm’s financial strength is diminished, which affects its prospected future growth.

Conclusion

The introduction of a new snack product will substantially improve Stew Leonard’s market dominance by attracting new customers. This goal will be attainable due to the unique product features. Product uniqueness will be enhanced through continuous market research, hence entrenching the customers’ tastes and preferences.

This approach will remarkably minimize the inherent risk associated with its new product development. Furthermore, successful new product development will foster the firm’s longevity and market dominance in the US food industry.

References

Business Monitor International: United States food and drink report. (2014). Web.

Ogawa, S., & Piller, F. (2006). Reducing the risks of new product development. MIT Sloan Management Review, 47(2), 65-70.

Prepared Foods: Snack food consumption to increase. (2014). Web.

Symons, G. (2014). Its all about customer experience: CRM systems and loyalty programs. Web.

Introduction

New product development concept is the process of involving the customers in the process of introducing a new product into the market. The new product development procedure helps the company in marketing the product that they are introducing into the market. By using the new product development concept, companies have been able to attract huge margins in terms of profit (Kmetovicz 2009, p. 15).

In addition to that, companies have also been able to develop improvements in products in that they conduct regular interviews with their customers who point out mistakes in the products and thus the company can be able to modify the parts and thereby give the customers good products that they can enjoy while using.

Thesis Statement

With reference to the given question, this paper will create a scenario of a small entrepreneurial start-up in an e-business marketplace and will develop a recommendation for how SmartBizSystems will be able to develop a better approach in helping to avoid the problems that will be outlined in the scenario.

Discussion

In order to develop a recommendation that would help SmartBizSystems to be able to market their products, one must be able to understand the skills that are employed by the company in a bid to getting customers and consumers to buy their products. SmartBizSystems is a company that deals with e-business for companies and with this they must be able to attract more clients into their products (Kmetovicz 2009, p. 55).

The product of e-business is a new one the market and is for this reason that SmartBizSystems must be able to come up with ways of convincing clients that the new product can actually bring profits to their business. The main recommendation that one would offer to SmartBizSystems as a company is the use of the new product development concept (Monczka 2010, p. 29).

The first process will be to make the clients have a general picture of the products. This can be by making advertisements in the local media which will boost a client’s moral of having to buy the product. The next process will be to actually show the client that e-business actually works and how it brings about profit margins in the business. This will be one of the most important steps because this is where the company must develop the customer confidence in the product.

For every product to be able to make it in the market, the company must be able to show how the customers and going to benefit from it. The next process will involve having the customers to test the products and see how it works with regard to their businesses.

This will increase the chances of the customer having to buy the product because if he / she is satisfied with the way the product works for his / her company then this will mean that he / she will want to buy the products so as to be able to increase the profit margin more and more (Monczka 2010, p. 32).

In this case, SmartBizSystems will have to let the customers test the e-business products so as to be able to know what kind of impact it will have on their profit margins and this will in turn translate more customer buying the e-business product.

The next procedure will be to analyze the price that the company will charge for the products so as to able to attract more customers than their competitors. SmartBizSystems must be able to come up will a suitable price for the e-business product. The price must be attractive to customers so that they can be able to attract more customer than their competitors.

The next process involves the testing of the product in a busy environment so as to be able to know how it works. SmartBizSystems must conduct a test for the e-business product so as to be able to show how the product can work in a busy environment so as to be able to get huge profit margins. SmartBizSystems will also conduct interviews to customers who have already used the product so as to be able to know how the customers react to the product and this will in turn improve the development that will be made in the e-business product.

After the process of interviewing the customers with regard to the product, the company will then put all the queries together and thereby come up with suitable solutions to the problems. Some of the problems that may arise include so technical problems with the product which they can be able to find a way of fixing in a bid to making their product more user-friendly.

In this case, SmartBizSystems will take into consideration all the queries that will be brought forward by the customers with regard to the e-business products and thus come up with solutions that will promote their products to become more user-friendly.

Conclusion

In conclusion, the introduction of a product into the market is the most important and fundamental part of having to make customers and consumers aware of the presence of the product in the market. It is therefore very important to use the new product development concept in a bid to introducing the product into the market.

References

Kmetovicz, R 2009, New Product Development: Design and Analysis, John Wiley and Sons, London.

Monczka, R 2010, New Product Development: Strategies for Supplier Integration, Oxford University Press, London.

Product Development Models

Product development is the process through which new products are brought into the market (Aaker, 2012). In order for a product to be successful in the market, several factors have to be considered to ensure that the new product is capable of overcoming the competition that is present in the market.

At the same time, the product is expected to meet the needs and desires of the consumers so that they become loyal to the new brand. In addition, the new product needs to have solid sales to be profitable in the short run and in the long run hence meeting the goals of the manufacturing company.

TRC is one of the most common product development models that firms use to develop and introduce new products into the market (Aaker, 2012). This method identifies the haphazard and uncertainties that are present while introducing a new product into the market.

Therefore, the research and development team comes up with suitable strategies that can be used to eliminate the possible uncertainties that may come up at any stage in the product development process (Aaker, 2012). To achieve this, this model uses qualitative data that has been collected from various studies that have focused on the product development to come up with an ideal method that is more valid and flexible in application. This model has the following stages:

1. Idea generation
2. Feature development
3. Product development
4. Product testing

The figure below shows the various stages of this model (Kotler, 2007).

The stages in this model have been arranged in a manner that accommodates any unexpected occurrences. At the same time, the model supports feedbacks from customers, use of new methods or technologies and so on.

As stated earlier, this method mainly utilizes quantitative data that has been collected from other studies. In this respect therefore, this method uses a smart incentive approach in the idea generation stage. This approach is effective in that it utilizes the concepts of creativity and validation. Thus, respondents in a study are used to generate the most appropriate ideas of introducing the new product into the market.

This produces a list of competing ideas from peer groups giving out essential information with regards to market evaluation. At the same time, this information can be used to develop specific features of the product or the entire product. This increases the chances of success of a product entering into the market (Kotler, 2007).

The next step in the process is feature development. This method utilizes the max-diff approach that compares three to five different features of the product to determine which one of these will be more appealing to the customers. This method is superior to traditional methods that only compare the difference between two features of a product. In the product development stage, a number of features are collectively used to build and develop a product.

This stage also utilizes statistical information from respondents. At this stage, respondents are given the chance to select a combination of features that will be used to develop the final product. The features that are highly preferred by the customers are then used to develop the final product.

This process ensures that the final product meets the tastes and preferences of the market that the product is about to enter. Once the final product is available, the product testing process commences. Here, simulation tests are conducted to determine the different combinations of the product that actually meet the tastes and preferences of customers in the target market. This process is effective especially in a highly competitive market that contains a variety of substitutes.

Once this process is complete, information with regards to the strengths and weaknesses of the products are arrived at. Thus, specific modifications of the product become possible to ensure that the product meets the current needs of the market hence being successful in the short run and in the long run.

Walden University has also developed an effective product development model. This product development model has relatively similar stages as compared to the TRC model (Jugger, 2011). However, its main difference is that it has seven stages while the TRC model only has four stages. The following steps are used in the product development process of this model:

1. Idea generation
2. Screening
3. Concept development and testing
4. Business analysis
5. Product and market mix development
6. Market testing
7. Commercialization

In the idea generation stage, relevant information is gathered and analyzed with regards to the development of the new product. This is always an ongoing process in many businesses. In this process, information is sourced from within and outside the firm. In this stage, this method mainly utilizes market research concepts such as the use of focus groups comprising of customers, companys sales representatives and channel members.

These individuals are used to provide information with regards to the current market trends and the tastes and preferences of consumers. This method, facilitated with other sources of information, provides a firm with a variety of options that it can utilize to develop its new product (Jugger, 2011). In the screening stage, the ideas that were generated in the first stage are critically evaluated to eliminate less effective ideas.

In the initial stages of this process, the executives and top management officials are used to select the most favourable ideas for the business. In addition, several other research methods can be used to select the ideas that pose higher chances of being profitable, exhibiting low costs of production and so on (Jugger, 2011). Concept developing and testing is then used to evaluate the ideas that were selected in the previous stage.

Here, the marketing department uses its employees, distributors and customers as the focus groups of the ideas. These ideas are not presented to them in form of actual products but in theory. At this point, the marketing department aims at determining the attitudes and perception of the idea from the market, their purchase frequency and the desired price level. The ideas that are selected are the ones that have a positive feedback from the focus group.

At the business analysis stage, the number of ideas is always cut down to either two or three. It is however essential to note that at this stage, the final product has not been developed yet and the idea is still in theory. The main aim of this stage is to come up with projection regarding to the market size, the expected production costs, financial projections, and competitor analysis.

At this point, it is also essential for the management to determine whether the product ideas that they have are in line with their mission, vision, goals and objectives. In the product and market mix stage, prototypes of the selected ideas are developed. Here, they are presented to the customers for approval.

In addition to the prototypes, the customers also have other auxiliary features and information of the product. These may include the price, distribution chains and so on. The main aim of this stage is to determine the reaction of the consumers to the product. Suggested amendments of the product are then incorporated and the process is repeated once more until a desirable state of the product is achieved.

This process is useful as it is used to determine the large-scale market feasibility of the product. In the marketing stage, the product is made available to a larger testing group. In most cases, this group comprises of a segment of the market. This may be one city, town, or a specific geographic region.

Here, full marketing of the product is conducted. The main aim of this process is to determine the actual performance of the product in the market. The weaknesses of the product are identified and corrected. At the same time, its strengths are maximized. Once this has been done, the product is now commercialized.

Stage-Gate model is also another product development model that can be used to introduce a new product into the market. This method is similar to the other two methods that have been discussed so far. However, the main difference exhibited in this method is that a gate separates one stage of the development project from the other.

Therefore, before a proposed product passes to the next stage, it has to be approved either by the manager or by the steering committee (Eagan, 2010). This decision is based on a number of factors that include but not limited to analysis of risk, business analysis, and availability of essential resources. The following stages are included in this model:

• Stage 0: Discovering
• Stage 1: Scooping
• Stage 2: Developing the business plan
• Stage 3: Development
• Stage 4: Testing and validation
• Stage 5: Product launch

The figure below shows the stages of development of a product using this model (Eagan, 2010).

Discovering is the first step in this model. At this stage, a firm comes up with an idea that it wants to implement to gain competitive advantage over its rivals in the industry and to be sustainable in the short run and in the long run. To achieve this, the firm will usually utilize a number of thinking strategies.

Brainstorming and group thinking are some of the most common methods that are used to generate ideas at this stage (Thomas, 2009). In most cases, it is essential to communicate with customers to understand how the need and use products. Scooping is the second stage in this model.

Here, a company critically analyzes the proposed product and the market in which it is expected to enter. Here, the marketing department needs to maximize on the strengths and opportunities that the product has to overcome. Thus, a SWOT analysis is conducted at this level.

It is at the end of this stage that the product passes through the first gate of development (Thomas, 2009). Developing a business plan is the next step. This level forms the last part of analysis in the concept development of the new product. The first main essence of this stage is product development and analysis.

The benefits of the product to the user are analyzed. In addition, specific features of the product are developed to attract customers and to meet their tastes and preferences. It is also at this stage that a market analysis is conducted to determine its size, segmentation, and trends. This is essential in the developmental process of the product, as it will determine the quantity, quality, frequency, and price that the proposed product shall be manufactured with.

Consequently, the prototype of the product is also developed. It is presented to the staff and consumers and the feedback that is received is presented to the management and steering committee for analysis. The final process of this stage involves a series of analyses such as financial analysis, risk analysis and feasibility tests. Once these processes have been completed, the management or steering committee then decide on whether the product should pass this gate to the next stage or not.

Development of the product is the next step. With the help of the research and design team, building of the final product commences at this stage. To ensure that this process is effective and efficient, the SMART concept is utilized. This ensures that the project is simple, measurable, attainable, realistic and should be completed within a specific time frame (Black, 2007). Testing and validation form the next stage of the product development process.

This process is also referred to as beta testing (Stone, 2008). Here, the product itself, its manufacturing process, consumer reaction and the financial feasibility of the project are tested. However, testing is conducted on different levels. The first level of testing is referred to as near testing that specifically tries to identify any problems or imperfections that may be present in the product. Field-testing is the next level of testing. Here, a relatively larger audience is used to test the product.

Finally, market testing is conducted. This is usually the last stage in the validating and testing process. Here, the product is made available to a specific segment of the market. At this stage, all the aspects of producing, marketing, and distributing the product are put into place.

The manner in which the test market shall respond to the product is essential as it determines the decision that the steering committee or the management shall come up with regarding its launch and commercialization. Once the project has been approved, it is launched into the market. The manner in which the product is launched into the market is essential as it will determine the entry strategy that it will utilize and the attitude and perceptions that consumers will have towards it.

Therefore, the firm must have a clear understanding of the market especially in terms of the demand and supply of the product in the market. This is essential, as it will determine the quantity of the product that will be produced at any given time.

At the same time, the management needs to come up with an effective pricing strategy that will ensure that the product is not underpriced or overpriced to maintain a desirable price level. In addition, the management should come up with an effective marketing strategy that is backed up by experienced sales personnel.

Iterative Nature of Product Development Plans

Product development plans are usually iterative in nature. This is due to the fact that in the process of developing a product, it is essential to ensure that it fits the description of the firm. Most importantly, the product should also meet the needs of the consumers in the market (Schein, 2008).

Therefore, in the process of developing a product, it is impossible to meet all these requirements after producing the first prototype. Usually, once the first prototype is launched, several issues are identified. This includes omission an inclusion of specific features that customers advocate for. At the same time, the design or purpose of the product does not fit to its description or it does not tally with the goals and objectives of the company.

In some instances, a newer and more effective technology may be realized after a prototype has been made. It is after such considerations that make it necessary to revise the manufacturing plans of the prototypes with an aim of modifying them to meet these new requirements (Schein, 2008).

A prototype may pass through several modification processes before reaching a sustainable level. It is with the appreciation of these factors that make the product development process to be iterative in nature. Below is a diagram that shows the iterative nature of product development process of Scrum softwares (Schein, 2008).

After having a careful look at the diagram, one can notice that the print process is repetitive within every 24 hours for 30 days. It is in this stage that softwares are essentially tested to ensure that they are effective and efficient in operation and that they meet the requirements of users.

Attributes of a Good Product Development Model

For a product development process to be effective in its operations, it needs to possess a number of key attributes. A good product development model must have a platform in which ideas can be generated. It is from these ideas that the final product that will be released into the market shall be generated from.

Therefore, an effective model should use a variety of methods to incorporate ideas from a wide range of sources (Belbin, 2010). This includes the top executives, mid and low level employees, distributors and mainly the customers in the market. Development of desirable ideas is essential as it plays a critical role in ensuring that the final product meets the customers expectations and is in line with the mission, vision, goals, and objective of the manufacturing company.

Once ideas have been generated, an effective product development model should have a developmental phase. It is in this phase that these ideas are presented to a focus group in order for the manufacturing company to gather information with regards to their attitudes and perceptions of the products.

It is essential that product development models incorporate this attribute as it provides critical information with regards to the features of products (which by this moment should be presented as a prototype), which should be incorporated and those that should be eliminated. This is a key step towards producing the final product.

Essentially, a good product development model should also have a testing phase where several constrains of the product are tested using a segment of the target market as a focus group.

By this time, the product should be in its final stages of development. The factors that are to be tested here includes the reaction of the market to the product, its price levels, production and distribution costs, financial feasibility, demand and supply and so on. Once all this information has been gathered, the product can be launched successfully into the market under close monitoring.

A good product development model should also be iterative in nature. This will ensure that the final product that is developed has undergone a series of tests to meet the needs and desires of the target market and the company. At the same time, the model should also allow for information to flow in all direction from the management, employees of all levels and to other third parties such as customers and distributors that are involved in the program.

This will ensure that the final product contains the attributes that satisfy the needs of the target market and the company. This is essential as it ensures that the product reports desirable sales figures and is profitable both in the short run and in the long run. This is essential to build the brand name and image of the company as well as ensuring that it stands at a competitive edge over its rivals.

Importance of Information Flow in a PDP

In the course of their operations, firms normally operate to gain a competitive edge over their rivals and to be sustainable and profitable both in the short run and in the long run. To achieve this, firms usually come up with new products that aim at capturing the attention of the consumers within the market to boost their sales and improve on their brand names. However, to achieve this status, it is essential for the whole process to be based to a program that supports information flow in all directions.

The aim of developing a new product is to satisfy the needs to consumers in the market (Belbin, 2010). At the same time, the new product needs to portray the image of the manufacturing company. Therefore, to get information from the target market with regards to their tastes, preferences, attitudes and perceptions of the product, it is essential for the product development program to have a framework that supports and incorporates information from the public.

At the same time, the same program should come up with means through which information from within the organization, with regards to the program, is analyzed. The figure below can be used to show how information flows in a program development process (Belbin, 2010).

Firms usually have a lot of information and experiences in the course of their operations. This information forms the organization memory and is usually stored and retrieved whenever necessary. At the same time, a firm uses information from other sources in the course of information acquisition while developing a new product. This information is disseminated, interpreted, and utilized to form the new product. Once the process is complete and the product has been launched, the information is stored for future use.

It is also important to note that the product development process is iterative in nature. Therefore, information flow is essential to support this concept to ensure that the final product that is arrived at meets both the needs of the customers and the company as well. Thus, a good PDP must have definite feedback loops while testing the product before launching it.

Essentially, communication with regards to the changes in features and design of the product to other employees is also essential is it avoids repetition of work and ensures that everyone is aware of the status of the product in its development process. Thus, information flow is essential to design an effective and efficient product.

Management Structure and Information Flow

Companies incorporate a management structure that best suits their operations to ensure that they are sustainable in the short run and in the long run. According to Sign (2009), managerial structures can be divided into:

1. Centralized managerial structures
2. Decentralized managerial structures

In centralized managerial structure, all the power of the organization is concentrated on the top managerial levels. Due to the amount of power they have, the top management level exercises tight control over the affair of all the divisions or the departments that constitute the organization. On the other hand, power in decentralized Managerial structure is distributed among all the departments or divisions of the organization who work in unity to achieve the goals and objectives of the firm.

Therefore, in centralized managerial structure, information only flows in one direction; from the top managerial level to the other lower levels. Due to this fact, information is always highly distorted before reaching the lower levels. At the same time, information cannot be passed from lower levels up to the management.

Therefore, while designing a product, the views and ideas of other individuals will not be considered. As a result, the overall outcome of the new product will not be efficient, as it was not based on vast ideas from individuals within and outside of the organization. This greatly reduces the chances of the product being successful once it has been launched.

In a decentralized system, information flows in all directions. This ensures that information is still intact while moving from one level to the next in the company. Therefore, individuals of all levels of the company are included while developing the new product. At the same time, information from outside sources such as customers and distributors is always utilized in the program.

Thus, the final product will portray the views of the company and its target market. This is essential, as it will increase the chances of the product entering successfully into the market, being profitable and sustainable in the short run and in the long run. The figure below shows a comparison of traditional product development methods and concurrent engineering (Belbin, 2010).

Importance of Market Research in a PDP

“
Before a product is launched into the market, the management of the organization must conduct an intensive market research to ensure that all factors of the market have been considered. This is essential as it will provide a clear understanding of the size of the market, its segmentation, and the taste and preferences of the consumers found in the different segments (Jugger, 2011). Additionally, market research also provides information with regards to the market trends.

This includes consumers purchasing power, quantity and frequency. This information is essential in determining the demand and supply of the market as well as setting up the price of the commodity. After conducting a market research, the management will be able to come up with the most cost effective supply chain that will ensure that the product reaches to each and every targeted customer.

At the same time, the company will be able to come up with effective marketing strategies that will boost the sales of the product, improve its brand name, and ensure that it is sustainable in the short run and in the long run.

Concurrent Engineering

Concurrent engineering is a relatively new style of product development. Unlike the traditional product development models that took a lot of time to come up with decisions and designs that pertain a product, concurrent engineering is parallel and incorporates all aspects that are required in the development of a product during the initial stages (Jugger, 2011).

The iterative nature of concurrent engineering ensures that all factors that may affect the production of the new product are looked focused upon during the early stages of development to ensure that the product fits the description of its purpose.

Concurrent engineering is an essential tool especially in companies that operate at the present day and time where the business environment changes rapidly. This methodology ensures that such companies come up with quick, effective, and responsive solutions to the problems that they may face in the course of their operations.

Advantages of CE in PDPs

Concurrent engineering is a new method used in the product development process. Concurrent engineering guarantees that a company will stand at a competitive edge over its rivals in the same industry (Sign, 2009). This is because the method can be used in small and large companies. Using this method guarantees cost efficiency while producing new products. At the same time, it ensures that the product is effective and perfectly fits its description.

Despite the fact that incorporating concurrent engineering may be capital intensive, the method will become beneficial in the long run operations of a company. Concurrent engineering also increases the operation efficiency of a company. This is because it reduces the cost of production, increases the quality of the product, enhances the production cycle, and ensures timely delivery of products. Any problems that may be associated with the product are identified during the early phases of development and corrective measures are taken.

This method also reduces the time taken in design and development. This is because if offers effective communication between the firm and customers hence being able to produce a product that meets their needs and expectations. Thus, companies that use this method are able to produce high quality products at lower costs within a definite time, which are able to meet the needs and expectations of their target market.

Generic Requirements for the Implementation of Concurrent Engineering

For concurrent engineering to be effective and efficient, it needs to follow the SMART concept (Sign, 2009). Here, the proposed project needs to be simple in terms of its features and appearance. In addition, the project has to be measurable. This is essential as it determines the level of progress of the project.

The project also needs to be attainable. This will ensure that the company is able to achieve its set goals and objectives once the new product is launched. The proposed product also needs to be realistic. It should fit the needs and expectation of the target market as well as those of the manufacturing company.

Finally, the product should be developed within a specified time period. This is essential in terms of planning, setting budgets, controlling expenditure, and delivering the final product into the market at a specific time. If considered, these issues will be essential in ensuring the success of a concurrent engineering process being successful.

It is also essential to ensure that concurrent engineering is iterative in nature. This is essential as it guarantees that the final product that is released into the market meets the needs and expectations of the target market as well as that of the manufacturing company and other stakeholders.

To achieve this, problems that may be associated with the product during its developmental stages should be identified and solved during its early stages of development. This will ensure that the product fits its description and is manufactured within the shortest time possible undertaking minimal costs.

The project should also be carried out in a systemic manner. It is the nature of concurrent engineering to conduct processes in a parallel manner. This sequential flow of process should incorporate all the members of the product development team. This therefore makes it essential to ensure that teamwork exists among individuals, departments and on special cases, among organizations.

This ensures that the product is developed in the most effective manner thus enabling it to fit its description. This will sustain the success of the product in the short run and in the long run. Once all these considerations are put in place, concurrent engineering always surpasses traditional product development models.

References

Aaker, M 2012, Product Development: Methods and Practices, Sage, London.

Belbin, A 2010, Consumer Approaches in the 21^st Century, Prenstile Hall, New York.

Black, D 2007, ‘Strategic Practices’, Journal of Consumer Behaviour, vol. 1 no. 2, pp. 12-30.

Eagan, C 2010, Information Gathering and Processing, Sage, London.

Jugger, M 2011, ‘Field Operations and Product Development’, Business World, vol. 1 no. 2, pp. 55-71.

Kotler, D 2007, Product Development Models and Structures, Thousand Oaks, Boston.

Schein, S 2008, Organization Management, Longhorn, Chicago.

Sign, P 2009, Consumer Practices, A&A, New Delhi.

Stone, G 2008, Market Analisis: An Organizational Approach, Sage, London.

Thomas, T 2009, New Product Development Approaches, Oxford University Press, Oxford.

Introduction

New products create a good opportunity for organisations. This ensures that an organization is on a creative plane where it can stimulate profitability growth. This can help organizations to expand their business operations from domestic to international levels (Parsons and Maclaran, 2012).

For this to happen, the new product development process strategies should be employed by the organization to encourage and harness the creative and innovative talent within it (Annacchino, 2003). The research answers various questions. These include: what are the strategies for new product development for soft drinks?

Will the process facilitate efficient communication for the new product development project ranging from learning to training to best practices? Does the process provide an agreement on the criteria for investment in a new product development and its branding and post launch evaluation? Consequently, the research should recognize the challenges that new product development process encounters. This should be inclusive of accountability and possession of all associated capital spending decisions (Kumar & Phrommathed 2005).

Thesis statement

The main aim of the research paper is to assess and analyse the approaches and methodologies of new product development. This will be achieved through comparing the relevant literature related to the research topic. Notably, the new product development (NDP) is vital for the company’s growth and prosperity. Though it is not easy to manage, the NPD leads to opening new markets and attracting new customers.

It also helps organizations to enlarge their capabilities and provide higher qualities on final products. New product development has stages and activities related to the idea of launching new products and with systematic approaches to the phases in the company. In this case, the probability of the company succeeding and securing a long time survival is very high.

The new product is the most critical factor for organizations because customers or clients’ needs change rapidly and fosters competition among companies. Competition leads to positive impacts because it forces the organization to bring new products to the market. In addition, the products are offered at a reduced cost. Furthermore, competition improves the quality of products for consumption (Brown, Leavitt, Wright & American Productivity & Quality Center, 2004).

Methodology

This research study will mainly use qualitative research methods from both secondary and primary sources. The secondary sources for the dissertation will include the academic journals, books, papers and the internet, which will help identify areas of best practices. The primary sources of data will include members of the product team, the marketing and sales managers, the manufacturing and production managers and the other employees who were involved in the new product development process (Weinberg, 2001).

The dissertation will use various methods of qualitative research. This includes questionnaires and interviews. In addition, observations and documentary analysis will be used. I prefer the qualitative methods of research for this study given the qualitative nature of the data required (Liamputtong, 2009).

Through the observation method, it will be easy for me to note the companies where the process of new product development has taken place. I will also make use of appropriate documents related to the study. This will include the private reports and records. Video recorders and cameras will also be used to reinforce observations. In addition, through the personal first hand experience of the new product development, understanding will be facilitated (Johnson & Christensen, 2012).

The interview will also be helpful as it aids in generating a large amount of data. I shall employ tape recording for later transcription. One can search for opinions, check an apparent contradiction, ask for clarifications, seek comparisons, ask for further information, aim for comprehensiveness and pose alternatives through the use of interviews as a method of qualitative research.

I will interview the managers of different departments including the project, production, marketing, and sales managers. I will also interview a few employees who were involved during the process of new product development (Kvale, 1997). The questionnaires are also critical in the research for the new product development process in many ways.

For instance, it exposes accurate facts or pursues answers to firm categories. The questionnaire should create room for checks and balances. It should also cater for any extensions and adjustments. The questions should also recognize the situation under which the feedback is provided. The questionnaires will be addressed to the managers or assistant managers from the departments that were associated with the new product development process. In this case, they will give details out of experiences during the NPD process (Bryman & Bell, 2007).

Expected Outcomes

The data from the primary research will be compared with the literature presented. This is meant to find out how the new product development contributes or is instrumental to success of the product.

Types and stages in the New Product Development Process

The types of product development models include a departmental stage model, which holds that departments are responsible for various activities carried out. The other one is the activity stage models, which improves on the departmental models since they are more concerned about the actual activities carried out inclusive of various iterations of market testing.

In addition, there is the decision stage model that represents the NPD as a series of evaluation where decisions are made. This is with regard to either continuing with the project or not. Lastly, the conversion and the response models have their own explanations for the new product development process (Rafinejad, 2007).

The stages or phases of new product development starting with the first step in the NPD include idea generation, which focuses on sourcing ideas, and idea screening whereby the sourced ideas are weighed and good ideas selected, and bad ideas rejected. The third stage is concept testing, which helps the company to find out if the consumers understand, need, and accept the product idea or not.

The fourth stage is business analysis, which helps the company identify whether the product is commercially profitable or not. The fifth stage is a product development whereby the company decides to bring the product to the market. The sixth stage is test marketing whereby the new product is introduced in the market in measured quantities.

If the product becomes successful, it is then introduced on a large scale. The seventh stage is commercialization whereby after the test marketing is successful the company makes a large investment in the new product. The last stage is a review of the market performance that should give an answer to whether consumers are happy with the after sales service (Annacchino, 2003).

Timetable for the dissertation research

I am planning to start my dissertation research in two weeks time. The dissertation will explore how new products are successfully brought to market. Meanwhile, I am preparing to equip myself with all the necessary requirements for the research so that it can be perfect. I will first visit the companies that have successfully practiced the process of NPD.

I will collect data using the qualitative research methods that I have already mentioned. I will also research on organizations, which want to introduce new products to the market, see the strategies they are using, and do a follow up to inquire if they succeeded. This will take two weeks, and for those 14 days, I will schedule the stages or topics to be covered every day.

In this case, before the end of two weeks, I will have covered every detail. In the third week, I will write down the final version. I will be grateful if my proposal is approved so as to correlate with my schedule. Therefore, the proposed research is likely to take three weeks before completion. The data collection will take a maximum of two weeks, whereas data analysis and report writing will take a week.

Literature review

This field of new product development is widely researched in organizations and institutions. This concept has been integrated in many disciplines including, technology, management, business studies and policies, marketing and engineering. Personally, I have learned the new product development process as a topic in my management course and thus I have the theoretical knowledge about it.

Such researches will show how organizations implement the new product development. Therefore, the research will provide or offer knowledge about the success of new product development. Managers have gained a lot from the research on new product development.

Reference List

Annacchino, M A 2003, New product development: From initial idea to product management, Butterworth Heinemann, Amsterdam.

Brown, M, Leavitt, P, Wright, S & American Productivity & Quality Center 2004, New product development: A guide for your journey to best-practice processes, American Productivity & Quality Center, Tex: Houston.

Bryman, A & Bell, E 2007, Business research methods, Oxford Univ. Press, Oxford.

Johnson, B & Christensen, LB 2012, Educational research: Quantitative, qualitative, and mixed approaches, SAGE Publications, Calif Thousand Oaks.

Kumar, S & Phrommathed, P 2005, New product development: An empirical study of the effects of innovation strategy, organization learning, and market conditions, Springer Science +Business Media, New York.

Kvale, S 1997, InterViews: An introduction to qualitative research interviewing, Sage Publ., Thousand Oaks.

Liamputtong, P 2009, Qualitative research methods, Oxford University Press, South Melbourne, Vic.

Parsons, E and Maclaran, P 2012, Contemporary Issues in Marketing and Consumer Behaviour, Routlegde, New York.

Rafinejad, D 2007, Innovation, development and commercialization, J, Ross, Boca Raton, Fla.

Weinberg, D 2001, Qualitative research methods, Blackwell Publishers, Malden, MA

Introduction

Products act as the main source of monetary benefits that organisation organisations enjoy upon availing them to willing clients. An organisation may decide to increase its sales returns by colonising new markets. Due to differences in the needs of the target consumers in different markets, it may be compelled to either improve or develop completely new products to suit a market (Kim & Wilemon, 2007).

This strategy is perhaps largely workable for Google when it chose to enter the Chinese market. Considering that the goal of new product development (NPD) entails coming up with products that succeed in a target market, using the case of Google China, this paper investigates the processes of developing such commodities.

Purpose

This paper discusses new product development at Google China. The discussion borrows from various theoretical frameworks for developing new products in organisations. The paper also conducts interviews on customers and company employees about the reception of Google China’s new products with the aim of developing an understanding on the effectiveness of NPD practices of the company.

Background

First led by Kai-Fu Lee, Google China began as a subsidiary of Google Company in 2005. It ranks the third position in the Chinese market after Soso and the Baidu. Carsten (2013) informs how it controlled a market size of about 338 million people in 2009.

Over the years, the company has been struggling to expand its market. However, it has encountered immense challenges akin to the various legal regulations on search engines in China’s mainland. In 2010, Google searches were prohibited for some time in China’s mainland. Mobile searches and others yielded DNS errors (Carsten, 2013).

Hong Kong does not censor search results for various search engines. Google China found it the most appropriate location from where to control the sharing of networking and information resources across the internet with Google customers who are located in the China.

Marketing successful Google products elsewhere across the globe in the Chinese market is incredibly difficult because of censorship and other regulations on information sharing. The company endeavours to search new products that fit the Chinese search marketplace.

For instance, it presumes that the software for android Smartphones has a high potential to succeed in the Chinese market. Google had controlled 29 percent of the total search market in China by 2010. However, this trend declined by 24 percent over 2012 before settling at 1.7 at the close of 2013 (Carsten, 2013).

This poor performance attracted the necessity for the development of new products that suit the Chinese market. This case has been given priority if Google China has to operate in the market with success in the future.

Scope

New product development comprises all approaches that are applied to avail new products in all markets where an organisation’s operations are established. These strategies include idea development, design of the products, its engineering, marketing research, and promotion analysis.

The scope of this paper is limited to product design, idea development, and engineering. The other two aspects (marketing analysis and research) focus on ensuring acceptance and performance of the products in the marketplace.

Methodology

This research uses both primary and secondary resources. Direct online interviews, which are conducted on employees and customers of Google China, are the sources of primary data. The interview questions are designed to eliminate ambiguity. This situation enhances clarity so that interviewees can respond accurately.

The interviews (as shown in appendix 1 and appendix 2) focus on determining the reception of Google products, which the Chinese people search consumers. The questions also target at determining the implication of censorship upon the consumption of the product. This information may provide an opportunity for benchmarking or reverse engineering in the development of new products that suit the Chinese consumers.

A sample of 20 people (customers and Google China employees) was interviewed. Primary data is important in helping develop thumbnails for products that are likely to succeed in the Chinese market.

However, the development of the actual products requires the deployment of an appropriate NPD conceptual model. Therefore, a wide range of secondary data on frameworks of NPD becomes important. The most appropriate framework is then selected for analysis of Google China’s NPD processes.

Assumptions

The models deployed in the discussion of NPD are borrowed from secondary resources. Such models are developed for application in general organisations without considering specific needs in some markets.

This research assumes that upon generation of ideas that measure up to the needs of the Chinese market, Goggle China can follow such models to create products that will succeed in the Chinese marketplace. The research also assumes that no other recent or better NPD models exist in unpublished scholarly works and/or stored in a form that is inaccessible through online libraries.

Limitations

Using online interviews to collect data in a nation where there is regulation of freedom of expression through online media is one of the major limitations of this research. Fear among the interviewees on the purpose or use of the information that is sought from them may increase their reluctance to participate in the interviews.

This situation has the implication of lowering the accuracy and reliability of the research findings and the offered recommendations. The approaches deployed by Google in NPD may also differ from those applied by other organisations. Thus, the process of generalising and applying the recommended NPD processes in other organisations is another limitation of the research.

Frameworks

Sequential Model

The sequential model depicts the process that leads to the development of new products. It comprises a number of sequentially organised steps (Smith & Reinertsen, 1998).

Application to the Organisation

Sequential model in figure 1 shows that NPD initiates with the development of the concept or a product idea before examination of the feasibility of the products. This case makes the model highly applicable in Google China since the challenge of developing new products that meet the needs of the China’s search market requires compliance with China’s rules and regulations.

The feasibility of the product must be evaluated in the context of legal and regulatory environment so that a failure to pass the feasibility test calls for a re-examination of the concept before any other effort to develop the product further.

Aspects such as the quality of the product and its capacity to satisfy of customer needs are also accomplished at the feasibility stage (Smith & Reinertsen, 1998). In fact, at Google China, organisational resources can be wasted if software and applications developers initiate NPD process without total assurance of the likelihood of acceptance of the new product as it progresses in each stage of development.

Overlapping Model

The overlapping model approaches NPD process through the interactions of various professionals and work teams from the beginning to the end. Rather than operating through specialised stages, contribution of all players in the development process ensures attention to varying ideas since the development process takes place (Ulrich & Eppinger, 2004).

Under the model, each of the stages of NPD initiates before the end of the preceding stage (Ulrich & Eppinger, 2004). Additionally, new product developers at one stage pre-visit the previous stage in an attempt to incorporate various changes to eliminate cascading bugs in the current stage from the previous stage as illustrated in figure 2 below.

Application to the Organisation

While developing new Google China’s products, several variables may influence the success or failure of the overall development process.

While implementing a phase in the NPD process, it important to consider the necessary changes in the previous phases in an effort to incorporate them in the second phase to increase the probability of success of later phases. For instance, it is important to evaluate a phase in the context of the likely omissions of legal requirements as they apply in China’s search industry.

Projected by Hansen and Birkinshaw (2007), the innovation value chain scheme presents four chronological stages, namely creation of thoughts, selection of the appropriate idea, transformation, and idea execution.

The model provides an in-depth examination of an organisation’s efficacy through KPI constraints for gauging production capacity. The framework may be fruitful at Google China since it can be tailored to diverse production stages within the company

Application to the Organisation

The usability of the value chain framework to different sectors within Google China makes it feasible to gauge the circulation of various production strategies across many systems while at the same time weighing production at different departments that make the company.

The framework can come in handy while determining production at Google China by enlightening its expenditure in IP security and/or in structuring its status to advance its production volume.

High-Tech model

Google China operates in a technology intensive industry. This environment underlines the necessity for considering NPD models that are applicable to such an industry. Cooper and Edgett (2010) assert that high-tech organisations need to establish NPD models that incorporate their business objectives and specific goals. They suggested an NPD model that concentrates on these aspects.

NPD comprises various stages, namely thought formation, plan selection, model testing and expansion, industry scrutiny, beta testing, bazaar investigation, methodological execution, commercialisation, and pricing of the new product (Cooper & Edgett, 2010). However, the plan deviates from the sequential and overlapping models.

It features a special concept, namely strategic arena, which only applies in high technology organisations (Cooper & Edgett, 2010). This aspect refers to the particular business-oriented bazaar, trade, applications, merchandise category, technology, or simply efforts that are concentrated on a new product (Zemlickienė, 2011). The model also highlights the importance of the use of strategic maps in the NPD process.

Application to the Organisation

Strategic maps help in assessing the most effective and important strategic arena (Zemlickienė, 2011). This claim suggests that they offer mechanisms of evaluating and visualising the mechanisms of addressing various factors that influence the NPD process.

For Google China, strategic maps provide a room for incorporation of environmental factors that control the company’s success in the Chinese search market. In this sense, the model provides mechanisms for ensuring the development of customised Google products that are likely to boost the organisation’s competitive advantage in the Chinese market.

Diamond Production Framework

The diamond framework, which makes part of Porter’s work that sought to address the issue of competition disparities with reference to different products, has five key production elements, namely product upgrading and technology plan, idea-to-launch procedure administration, portfolio supervision, atmosphere, traditions, headship, and new product performance.

Application in the Organisation

Using this framework, Google China can think about three foremost matters, i.e. the availability of a premeditated product arrangement to advance its production levels, configuration of the plan with the company’s approaches, and the existence of reputable systems for ensuring successful execution of business strategies

Critical Analysis

Gaps Identified

The aim of approaching the problem of NPD in the context of a conceptual model that has various decision loops or algorithms is to ensure a reduction of bugs that result in failures of new products either in the development process or soon after completion of the entire process.

Identifying gaps in the organisation’s approach to NPD can help conceptualise an alternative approach to NPD, which will lead to the development of new products that have a higher probability of success in the market (Ulrich & Eppinger, 2004).

Google China uses NPD plan based on the standardised NPD model deployed by its parent company across all other markets, notwithstanding special laws and regulations in the Chinese market. This gap may explain the reduced success of Google success in China between 2010 and 2013 as discussed before.

Strengths

Although different NPD models have their strengths and weaknesses, consideration of strengths and weakness of the organisation in any market, which prompts the development of a new product is incredibly important. Google China has a large resource base support from the parent company akin to its successful global operations (Carsten, 2013).

The resources can be utilised in marketing research to identify specific attributes for search engines that are valued by Chinese search consumers. This information can be deployed as inputs of idea conception stage, which is common to sequential, overlapping, and high-tech models, to enhance utility levels of new products in the market.

Weaknesses

Due to declining competitive advantage in the Chinese market, the company may encounter challenges while trying to place its new products successfully in the Chinese market. This possibility is a significant weakness upon considering that it has a low presence in the social media advertising.

New media advertising constitutes one of the growing ways of communicating a product to consumers (Kotler, Adam, Denise, & Armstrong, 2009). The company has no capacity to solicit for relaxation of Chinese laws and regulations on search engines.

These inabilities create uncertainty on whether the nation will enact new laws that can create a non-conducive political climate for success of new products that are developed consistently with the provisions of the current laws.

Recommendations

In a market where the existing products of an organisation perform poorly, introduction of new products becomes the only option to re-energise its operations. Developing a new product begins with the identification of an appropriate NPD model. Google Company approaches NPD from the context of examining ideas from its people.

It prioritises the top most100 ideas, utilises agile approaches, promotes visibility, and/or pays attention to usability of its products. This approach fails to incorporate regulations such as censorship.

The model generally applies in nations that have higher levels of freedom for expression and sharing of information. Thus, it is recommended for the company to incorporate this consideration while at the same time deploying either high-tech or overlapping NPD approaches in the Chinese market.

Conclusion

Organisational products undergo different phases, namely the development phase, the preamble stage, rapid growth stage, maturation, and decline phase. At the decline phase, re-engineering or developing new products is important to prevent a total collapse of the organisation in a given market.

Google China recognises the importance of developing a new product that will renew its fortunes in the Chinese market. NPD starts with identifying an appropriate model. The paper has discussed three NPD models together with their applicability at Google China.

Reflection

Any organisation that seeks to gain a competitive advantage in a market that is characterised by competition and statutory regulations must not only focus on compliance, but also look for products that meet consumer needs better than the competitor products.

Through this assignment, I have learnt that introducing organisations’ operation in a new market requires the development or modification of products to meet specific needs of the market. The objective of any organisation is to deliver value to its owners.

This value is normally expressed in terms of the returns on investments. Organisations face the pressure of delivering value to not only to the owners, but also to other stakeholders who have stakes in the performance of the firm (Cooper & Edgett, 2010).

This goal cannot be achieved without high-performing products in the market since sales act as the main way of generating income in a profit-making organisation.

By studying the case of Google China’s struggles in establishing itself in the Chinese search market, I have leant that total assessment and analysis of the organisational operation environment is important in avoiding failures in placing products in the new marketplace.

Through the assignment, it is evident that the rules of new product development change with the changing external forces as an organisation ventures into different markets. This situation has altered my perception of new product development process as encompassing a holistic approach, which can be applied within any organisation with success.

Initially, I viewed product development as a process that constitutes all steps that are necessary for ensuring that a new product satisfies the needs of the target market in terms of usability. However, it is now clear that although a product may be highly usable, a regulatory force can prevent its consumption in the market.

Google Company has been successful in the global search market. Many organisations, especially software and networking applications companies, have benchmarked their NPD processes with those of Google. I believe Google Company is one of the global organisations whose products have received positive reception in all markets.

However, through the assignment, it is clear that no single company’s NPD strategies can lead to the creation of new successful products in all markets. Thus, although benchmarking is essential, it is important for an organisation to approach new markets in an open-minded manner.

This case ensures that the input for idea conception, analysis, and testing only depends on the anticipated environmental variables, but not on other variables that apply in another market segment.

This assignment has provided a learning opportunity on how product development process occurs in real-life. It is not a straightforward approach, but an approach that requires many iterations and examination of probable products through several algorithms to enhance their positive reception in the market.

For instance, through the interviews, potential customers of Google products in China unanimously agreed that if Google searches do not return DNS errors, which occur because of blocking of some sites due to censorship of the products to comply with China’s regulations, they could consume them.

In this extent, focusing on a particular organisation has provided an opportunity to appreciate how a particular context in which an organisation influences its NPD conducts.

Reference List

Carsten, P. (2013). Microsoft Blocks Censorship of Skype in China: Advocacy Group. Retrieved from www.nbcnews.com/tech/internet/microsoft-blocks-censorship-skype-china-advocacy-group-f2D11664965

Cooper, G., & Edgett, E. (2010). Developing a product innovation and technology strategy for your business. Research Technology Management, 53(3), 33-40.

Hansen, M., & Birkinshaw, J. (2007). The Innovation, Value Chain. Harvard Business Review, 85(6), 87-98.

Kim, J., & Wilemon, D. (2007). Sources and Assessment of Complexity in NPD Projects. R&D Management, 33(1), 16-30.

Kotler, P., Adam, S., Denise, S., & Armstrong. (2009). Principles of Marketing. Australia: Prentice Hall.

Rugman, M., & D’Cruz, R. (1993). The double diamond model of international competitiveness: Canada’s experience. Management International Review, 33(2), 17–39.

Smith, P., & Reinertsen, D. (1998). Developing Products in Half the Time. New York, NY: John Wiley and Sons.

Ulrich, K., & Eppinger, S. (2004). Product Design and Development. New York, NY: McGraw-Hill.

Zemlickienė, V. (2011). Analysis of High-Technology Product Development Models. Intellectual Economics, 5(2), 283-297.

Appendices

Appendix 1: Interview questions

Are you an employee or potential customer of Google China?

1. Employee
2. customer/potential customer

If you are an employee, what is your experience with Google China?

1. Always occupied in troubleshooting networks and directing customer traffic
2. Hardly occupied in troubleshooting networks and directing customer traffic

If you are customer/potential customer, have you ever used Google China search products

1. Yes
2. No

If your response to question 3 is No, why?

1. Highly censored
2. Always returns DNS error

If your response to 4 is b, can you consider using the products if Google China search products do not return DNS error or when censorship is limited?

1. Yes
2. No

Appendix 2: Interview Reponses

The case of Tata Nano is truly unique, as it managed to comply with several demands that seemed entirely unattainable. Specifically, the car, which cost a moderately low sum of money, met the quality standards set for much more expensive cars; in addition, the car was promoted successfully in India, where the car market was very small due to the economic issues. However, the project still needs support, which can be provided when taking two denizens of the Indian population.

To be more specific, middle class families and businessmen should be viewed as the key target audience. With the car allowing seating four people and sold for a reasonable price, it can be viewed as a perfect option for families of four or fewer people (Lemley, 2013), as well as businessmen, who would like to save money by purchasing low-price high-quality products. In order to enhance the purchasing process, the organization will need to consider the promotion campaign, which will ensure the target Indian population in the safety of the car and the reasonability of the purchase. In addition, choosing different media tools, i.e., the traditional and the modern ones will help one promote the product to a large amount of the Indian population.

Targeting Segments and Brand Positioning Statements

Though the time elapsed between the emergence of the Baby Boomers generation and the Gen Nester, each of the two displayed entirely unique buying behavior patterns. Segmentation variables for both types include the following items:

Social influence

A closer look at the BB and the GN will reveal that the people, which belonged to each era, differed greatly in terms of the social ideas, which they accepted as a norm. Specifically, BB were comparatively less susceptible to the effects of media on their buying behavior than the GN people (Parment, 2013).

Product choice

While BB preferred to use logics in the process of choosing an item to purchase, GN were clearly guided by emotions when represented with another opportunity for buying a product (Parment, 2013).

Retailer loyalty

Unlike GN, who preferred to switch between retailers in search for a better product, BB were very loyal to a specific retailer (Parment, 2013).

Based on the differences specified above, one may assume that incorporating a more aggressive promotion approach in its marketing strategy, the ReadyMade magazine could have survived the changes in the buyers’ behavior.

Bitter vs. Twitter

To people, who are tired Twitter’s stale interface, Bitter offers not only customizing options, but also an entirely new and user friendly one that will make the conversation process even easier.

Core Market Offerings and Defining the Product

Tropicana was right in making a decision to change its brand logo and update it according to the new standards for proper and tasteful design. What they did wrong was making a major change to the brand (Kirk & Berger, 2011). Indeed, a closer look at the principles of rebranding will show that the changes made to the logo of a well known product require that the image should only be updated and not altered beyond the point of bearing any resemblance to the original. While it would be wrong to assume that people would not be able to appreciate the product for its quality and not for the look of the cover, it would still be much more reasonable to carry out the changes to the logo step by step, thus, altering it only slightly in order to update it.

In addition, as the study shows, the company regrets making the changes mostly because the negative remarks made by the customers and the impressions that the product made spread among the target audience so quickly due to the use of modern media. This begs the question why the company did not choose social media in order to carry out an opinion poll among the TA prior to the change. The latter idea, in fact, invites the opportunity for improving the situation and suggesting customers to participate in another redesign via social media.

New Product Development and the Product Life Cycle

Promoting a new model of a smartphone is not an easy task for a small or medium company in the environment of global economy, as there are a plethora of organizations, which produce similar goods, and several leaders, which attract most of the target market. Therefore, the chances for succeeding are rather low unless a unique proposition is made to the TA and the company brand is promoted in a proper manner.

Consequently, the advantage of the new product must make it stand out of the range of similar brands; specifically, it should concern not additional functions of the device, but, instead, its price (Millward, 2015). By selling the products of the quality that can be compared to that one of the Apple, Inc.’s products, yet several times cheaper, the organization will be capable of gaining a significant amount of loyal customers. Hence, it will be imperative to emphasize in the promotion campaign that the firm offers the highest quality for the lowest price possible. Though obviously not new, the approach in question is bound to work as long as the customers realize that industry giants such as the Apple, Inc., Blackberry, etc. are merely brand names and that they are not worth overpaying for.

Reference List

Kirk, C. P. & Berger, K. A. (2011). Tropicana: Social media teach marketers a branding lesson. Journal of Critical Incidents, 4(1), 108–111. Web.

Lemley, A. (2013). The Tata Nano: The people’s car. Herndon, VA: Strayer University. Web.

Millward, A. (2015). 14 new Asian smartphone makers hoping to crush Samsung and Apple. Techinasia. Web.

Parment, A. (2013). Generation Y vs. Baby Boomers: Shopping behavior, buyer involvement and implications for retailing. Journal of Retailing and Consumer Services, 20(2), 189–199. Web.

Abstract

The primary goal of this research paper is to identify current product development strategies and their advantages. Issues that companies have to deal with during the process of implementation of such approaches are mentioned. Many companies struggle to stay competitive because some of the products become outdated. The demand for new ones has been increasing because new technologies are being introduced every single day, and some of them may be incredibly disruptive. Overall, the focus of this paper is on current trends, and aspects that should be taken into account by an enterprise to ensure that product development strategy is efficient and any possible expenses are minimized.

Introduction

It is imperative to mention that the role of product development has been increasing over the years. The most important aspect that needs to be mentioned is that an enormous number of strategies and approaches have been developed, and some of them are incredibly efficient. The issue is that many enterprises do not devote enough attention to this process, and prefer to use the same strategy for every type of product. Furthermore, it may lead to numerous issues, and such an approach cannot be regarded as effective most of the time.

Methodology

Several methods of research have been chosen for this paper. First of all, it is necessary to note that a broad range of peer-reviewed articles will be reviewed to identify current strategies and trends that are related to product development. One of the most significant factors that should not be disregarded is the determination of possible advantages and weaknesses of particular approaches. The descriptive research method has been because it is appropriate in this case, and it has proven to be incredibly efficient.

Results

It is necessary to mention that there are numerous articles on this topic, and some of the approaches that are suggested by authors can be regarded as incredibly efficient. The most attention is devoted to such aspects as the utilization of resources that are available and minimization of expenses. One of the studies suggests that it would be wise to take advantage of modern technologies, and many enterprises still use tools that are outdated. It is imperative to understand that it is necessary to keep track of the latest trends in the industry to identify particular areas that may have potential (MacCormack, Crandall, Henderson, & Toft, 2012). For example, an enterprise may try to develop a strategy that will be focused on such aspects as minimization of possible risks and others that may be harmful to the company. It is necessary to develop several prototypes of a product, and they should be viewed from different perspectives to have a better understanding of their advantages and weaknesses.

Also, another significant point that has been noted is that product development strategy should be based on the strategic goals of the enterprise and must be appropriate because efficiency is of utmost importance for modern businesses. It is paramount to understand that a firm should develop a set of styles that should be selected based on the situation or target market. For example, it may focus on such aspects as the level of emergency, effectiveness, and others. Another study indicates that the most attention should be paid to knowledge utilization because it is stated that it affects the level of performance on the market of a product that is innovative (Zhang, Di Benedetto, & Hoenig, 2009). It is understandable that every single situation needs a unique approach, and it may be hard to predict all possible outcomes. However, the results of this study are statistically significant, and they suggest that this approach would allow the company to be capable of developing products that are consistently profitable, and the knowledge that is gained in the process may also be viewed as incredibly valuable.

Projects that are breakthrough, products that have new features and the ones that can be regarded as minor improvements over previous ones may also be useful, but an ability to analyze the information that is available and utilize experience should be valued the most. Also, it is paramount to mention that another study suggests that such an aspect as the pace of new product development should be taken into account. One of the most significant aspects that are frequently overlooked is that most believe that a fast speed of the process and rapid commercialization are the most effective. However, the results of this research indicate that the approach needs to be flexible, and it is imperative to be capable of predicting possible issues in the industry (Kiss & Barr, 2014).

Also, numerous changes to the strategy may be made if it is necessary. The biggest problem that current businesses have to deal with is that the environment is changing at an incredibly fast rate, and it is likely that the situation is not going to change anytime soon, and a firm should be able to adapt to stay competitive. Authors of another recent study state that many companies would be able to gain a significant competitive advantage if they implement a strategy that is focused on modular product architecture. They suggest that it has a broad range of benefits and can be used to provide customers with many functions. The fact that it helps to increase the level of diversity also needs to be taken into account, and this aspect may be used by the enterprise to expand or focus on new target markets (Shikata, Gemba, & Uenishi, 2013). However, the problem is that it may not be an easy task to implement this approach because it requires significant amounts of resources, and the process may take too much time in some cases.

Discussion

A new product development strategy needs to be carefully developed because companies have to deal with numerous issues that may complicate the process such as the overall design of a particular product (Hsu, 2011). Many firms have recognized the fact that changes in the industry should be taken into account during the development of new approaches. Moreover, it is especially true when new products are being introduced because such activities may be incredibly risky in some cases, and firms need to take necessary measures to ensure that there are no complications that would hurt the business in the long-term. It is believed that a new project development strategy is one of the core factors that determine the level of success of a particular firm, but the connection between these two aspects is not direct most of the time.

Another core aspect that should not be overlooked is that many strategies have been developed in the past, but a company may make particular modifications to the process if it is necessary. Furthermore, it is necessary to mention that flexibility is one of the most important factors that should be considered by the company. Moreover, every single enterprise should be able to deal with possible changes in the industry and crises, and a set of well-developed product development strategies should help to address these issues. Also, the fact that the need for unique products has been increasing should not be overlooked, and it is one of the core factors that should affect the decision-making process of higher-ups. However, it is important to understand that efficiency needs to be preferred over other aspects most of the time, and the company should invest in research of current technologies because it has been recognized that a focus on knowledge is useful in most cases, and may lead to significant profits.

Conclusion

In conclusion, it is evident that the role of product development strategy should not be overlooked, and every single company that wants to stay competitive needs to invest in such activities because customer demands are always increasing (Awny, 2006). It is believed that many enterprises still use strategies that are not efficient and are in need of improvement. Furthermore, it is paramount to note that a well-developed strategy may lead to a significant advantage over competitors. The issue is that it may not be an easy task to justify such expenses most of the time, and many enterprises prefer approaches that are more traditional. Overall, it is necessary to have an understanding of the fact that the process of product development can be incredibly risky most of the time, and numerous internal and external factors should be considered to avoid possible complications or losses of profit.

References

Awny, M. (2006). Product development strategy: a perspective of enterprises. International Journal of Product Development, 3(2), 143-151.

Hsu, Y. (2011). Relationships between product development strategies and product design issues. Journal of Engineering Design, 22(6), 407-426.

Kiss, A. N., & Barr, P. S. (2014). New product development strategy implementation duration and new venture performance: A contingency-based perspective. Journal of Management, 20(10), 1-26.

MacCormack, A., Crandall, W., Henderson, P., & Toft, P. (2012). Do you need a new product-development strategy? Research-Technology Management, 55(1), 34-43.

Shikata, N., Gemba, K., & Uenishi, K. (2013). A competitive product development strategy using modular architecture for product and service systems. International Journal of Business and Systems Research, 7(4), 375-394.

Zhang, J., Di Benedetto, A., & Hoenig, S. (2009). Product development strategy, product innovation performance, and the mediating role of knowledge utilization: Evidence from subsidiaries in China. Journal of International Marketing, 17(2), 42-58.