- 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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