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What challenges does a company face in developing new products and services?

New-product development shapes the company’s future

New-Product Options

MAKE BUY

Types of new products

NEW TO WORLD IMPROVED FORMULAE

Challenges in new product development

Innovation imperative

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.In an economy of rapid change, continuous innovation is a necessity.

Highly innovative firms are able to identify and quickly seize new market opportunities

Companies that fail to develop new ideas (products) leave their existing offerings vulnerable

Cost of development

A company typically must generate many ideas to find just one worthy of development and thus often faces high R&D,manufacturing,and marketing costs.

Shorter required development time

Launch time

New products should be launched at perfect time

sometimes they are launched after the category has already taken off or when there is still insufficient interest

Shorter product life cycles

Rivals are quick to copy success* Sony used to enjoy a three-year lead on its new products. Now Matsushita can copy them within six months, barely leaving Sony time to recoup its investment.

sonymatsushita

Social,Economic,and Governmental constraints.

 

New products must satisfy consumer safety and environmental concern.

Advertising

price

Price

Price must be set after a careful market research . Setting a high or low price tags might lead to direconsequences

Distribution support

Initial distribution of product involves selling costswhich directly affects the Cost of the new product

Competition

New features

Adding new features regularly place a crucial role in the development of new product