COMM 131 Lecture 10: Class 10 – New Product Development
Document Summary
The development of: original products, product improvements, product modifications, and, new brands through the firm" own r&d efforts or acquisition. Two ways to obtain new products: acquisition (buying another company, new-product development (new products refers to original products, product improvements, product modifications and new brands that are the result of r&d efforts). However: new products are often risky and expensive; a high percentage of new products fail. New products improve customers" lives (better solutions, more variety) and allow companies to grow. But about 80% of all new products fail or dramatically under-perform in the first year. Only about 10% of new products are on the market and profitable after 3 years. Example: blackberry marketed for the security of their phone, which was not the solution that was the most profitable for the company. Problems in product development process: development cost too high, development too slow can"t get to market fast enough (behind)
