Nowadays, innovation and new product development (NPD) could be considered as an effective strategy for organisations to gain high competitive advantages over its competitor. This strategy has supported companies to satisfy customer requirements individually. Nevertheless, it could also create the challenges as well as the risks which could support or hinder the achievement of companies (Bolumole et al., 2014). This paper will discuss on the challenges of new products and services development. It would also illustrate the challenges and risks associated with developing new products and services. Moreover, this paper will apply the concept of new products and services with the real example from the venture project namely O.W.L (Online World Learning), in order to reflect the opportunities and risks exposure in the real practice.
New Products and Services Developments Due to the importance of customer orientation in organisation (Grublješič and Jaklič, 2014), companies tend to develop their new products and services in order to response with the increase of customisation and product quality (Zhao et al., 2014). According to Krishnan and Ulrich, (2001), new product development
…show more content…
Also, since there is uncertainty whether market situation tends to be positive or negative directions, O.W.L has fully aware of this uncertainty. Therefore, O.W.L has closely monitored the market trend in 2014 such as the influence of social network on the e-learning (EdTech Europe, 2014). Moreover, O.W.L also concern about other related factors such as the effect of personalisation on the online learning as they would impact on the online platform (Online Learning Insights,
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
The launch of a new product or service can be a defining and critical moment for any business. Precious resources such as time, money, manpower, research, and planning are just some of the few that are at risk for depletion if a company is not careful with launching a new product and/or service. In order to build their business and launch new product,
IDEO faces the decision of whether it should shortcut its product development process to meet a client’s time frame, or request a product launch extension so that IDEO has enough time to carry out a complete development process. IDEO’s client, Handspring, has requested that IDEO create a competitor to the Palm V, which IDEO helped to develop. IDEO faces the task of reconfiguring a palm-like product that meets Handspring’s desire to provide a lower-cost palm product with interchangeable cards and an enhanced design aesthetic that will appeal to a larger customer base. Dennis Boyle, former team leader on the Palm V project and soon-to-be leader on the Visor project, must decide whether or not to commit to Handspring’s short development timespan, which would inevitably lead to development shortcuts.
The business model for IDEO began as an open-minded place to design, develop and manufacture new products. The last 20 years of proven product design driven by innovation has translated into profit margins for their clients and continuous refinement for IDEO’s process. IDEO pioneered “concurrent engineering” where design and engineering work together to produce aesthetically pleasing products that are also highly functional. This was different from many other similar companies that placed more emphasis on the industrial design than the engineering. IDEO’s strengths grew out of the ability to master this ability with high tech clients. Corporations came to IDEO because they had a proven system of developing the best products through using their key ingredients for innovative strategy.
In product development strategy, a company tries to create new products and services targeted at its existing markets to achieve growth.This involve extending the product range available to the firm 's existing markets. These products may be obtained by:
Today, advances in technology and design are providing many opportunities for new and existing businesses to re-invent themselves and their marketing strategies.
The new product has new features and/or characteristics that are able to retain existing customers and attract new customers. The marketing mix should be able to increase the company’s sales and revenues.
Samsung’s product development includes all three approaches. Samsung invested in a Customer-centered new-product development. The new-product development focuses on finding new ways to solve customer problems and create more customers satisfying experiences. The “new management” is a top to...
In this world, creating a new product, as good as it may be, is not enough. The success of any product, in this day and age, depends grandly on the way it is presented to the market. Marketing is responsible in assuring a successful launch of a product, new or reinvented, and to assure its sustainability in this competitive world. For those reasons, billions of dollars are spent each year on tools and strategies to improve marketing research and predict the success of a product: many marketing firms form focus groups, do trials and conduct many tests just to end up with a fairly high percentage of failures.
emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***
The key aspect of a market orientation is listening to customers by including their desires and concerns into the company’s decisions. While businesses have varying degrees of interaction with their customers, all create a product or service to market to a customer. Consequentially, this business orientation can lead to multiple benefits for an organization to include “increased customer satisfaction and loyalty, higher finical performance, and improved new product creativity” (Reed, Goolsby, & Johnston, 2016b, p. 3591). Ultimately, the goal of a market orientation is to gain a competitive advantage over competitors, A market orientation has been proven to lead to a higher
The products life cycle consist of four stages namely, the introduction stage where the product is still new in the market and few people know about it as it has just been introduced into the market; the growth stage where the product experiences a rapid growth because people are taking it at an increasing rate; the maturity stage, also known as the boom stage, where the product is popular and is bought at a constant rate; finally, the rescission stage where the product consumption reduces because people have started shifting to other new products in the market. In the product life cycle, the product is in the introduction stage. Since it has just been introduced into the market and people do not know much about it. Though the product is still in the introduction stage, it is easy to pronounce and spell. It is descriptive in that it shows some of its features and communicates its benefits as well. The name can be distinguished from the rest of the products easily.
The product is either a tangible good or an intangible service that is able to meet a specific customer need or demand. All products follow product life cycle and it is important for marketers to understand and plan for different stages and their unique challenges. It is essential to understand all of the problems that the product is attempting to solve. The benefits offered by the product and all of its features need to be understood and the unique selling proposition of the product need to be studied. Moreover, the potential buyers of the product need to be identified and understood.
With the rise of the economy, consumers have become more and more knowledgeable on selecting their favourable product as a result the organization cannot focus on what it sells but on the side focus on what the customer wants to buy.
Online education is a booming trend in the education world. It is something different than the traditional classroom. It is allowing student around the world the opportunity to get an education. Online education allows student to have a more proficient and cheaper way of learning. Having multiple ways to give a student an education allows all learning types to find their own way of learning. Education changes lives but it can be difficult for students to get to a classroom to sit through an hour class 4 times a week, this can be for many different reasons. There are many doubts about online education, but this a new world without borders it is a new opportunity for people from all over the world to get an education.