A discussion about factors which need to be considered before launching a new product.
Written in 2002; 1,340 words; 7 sources; MLA; $ 45.95
Paper Summary:
Developing and introducing a new product requires several marketing considerations. This paper presents the many negative factors to product development that must be dealt with. It also examines several factors that promote successful product development. Finally, product positioning and pricing are also shown to be important considerations. Microsoft and Apple-Macintosh are used as examples.
From the Paper:
"One of the negative factors is uncertainty. This is especially true if the product is not only a new product for the organization but also a new product for the industry. One example that shows this is the computer software industry. The uncertainty is present because of its nature as a new and pioneering industry. The industry is rapidly changing and companies in the industry must be continually innovative and make decisions based on limited information. There is no certainty in this industry that a successful company will remain successful. To give an example, we can consider Apple-Macintosh. Apple-Macintosh had first-mover advantages as the first to develop a graphical user interface and their technology was ahead of Microsoft?s, yet despite this Microsoft became the market leader. This is an example of how the maker of the best product is not necessarily the market leader in emerging industries (Burke, Condron, Conroy, Knol & Nolan.)
"The second negative is the high cost of product development. The high cost means that organizations developing new products need to get a return on investment that justifies this high cost."
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