Wednesday, January 14, 2009

NEW PRODUCT

why develop new product
  • to add to product portfolio
  • to create stars and cashcows for the future
  • to replace declining products
  • to take advantage of new technology
  • to maintain or increase market share
  • to defeat rivals
  • to keep up with rivals
  • to maintain competative advantage
  • to fill a gap in the market
  • to bring in new costumers

criteria for evaluating new products

  • is there sufficent demand
  • will it be profitable
  • what is the likely payback period
  • does it fits firm's image
  • dose it fits firm's portfolio
  • what is likely life cycle of the product
  • what is the state of the market and the competition
  • does the firm processess the capabilities to sucsessfully produce and market the product
  • how easy will it be to manufacture

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