الثلاثاء، 23 سبتمبر 2014
الاثنين، 22 سبتمبر 2014
Why do new products fail
A high-level executive pushes a favorite idea through in spite of negative market research findings
The idea is good, but the market size is overestimated
The product is not well designed
The product is incorrectly positioned in the market, not advertised effectively, or overpriced
Development costs are higher than expected
Competitors fight back harder than expected. Several other factors hinder new-product development
Shortage of important ideas in certain areas:There may be few ways left to improve some basic products (such as steel, detergents)
Fragmented markets:Keen competition is leading to market fragmentation Companies have to aim their new products at smaller market segments, and this can mean lower sales and profits for each product
Social and governmental constraints:New products have to satisfy consumer safety and environmental concerns. Government requirements slow down innovation in drugs, toys, and some other industries
Costliness of the development process:A company typically has to generate many ideas to find just one worthy of development. Furthermore, the company often faces high R&D, manufacturing, and marketing costs
Capital shortages:Some companies with good ideas cannot raise the funds needed to research and launch them
Booz, Allen & Hamilton has identified six categories of new products
New-to-the-world product
New products that create an entirely new market
New product lines
New products that allow a company to enter an established market for the first time
Additions to existing product lines
New products that supplement a company’s established product lines package sizes, flavors, and so on
Improvements and revisions of existing products
New products that provide improved performance or greater perceived value and replace existing products
Repositionings
Existing products that are targeted to new markets or market segments
Cost reductions
New products that provide similar performance at lower cost Less than 10 percent of all new products are truly innovative and new to the world. These products involve the greatest cost and risk because they are new to both the company and the marketplace. Most new-product activity is devoted to improving existing products. At Sony, over 80 percent of new-product activity is undertaken to modify and improve existing Sony products
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