ADM 2320 Lecture Notes - Lecture 9: Cd Player, Mobile Phone, Root Mean Square
13 May 2017
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Document Summary
Why do firms create new products: changing customer needs. > adding new products allows rms to create & deliver value by satisfying changing needs of current and new customers. > sometimes rms take a well-known product, such as a vacuum, and make it much more interesting (e. g. , dyson: fashion cycles. > fashion industry: relies on trends, experiences short product life cycles. > most sales come from new products: market saturation. > the longer a product exists in the marketplace, the more likely the market will become saturated (saturated markets also offer opportunities) > without new products or services, the value of the rm declines: managing risk through diversity. > innovation allows rms to create a broader portfolio of products (this leads to diversi cation of risk, a portfolio of products is better than having just a single product, don"t put all your eggs in one basket ) > pioneers that are rst to create a market or product category.
