Tuesday, January 13, 2009

"Why New Products Fail" by Ali Haider

Yesterday, I have read about an article about the reasons of failure of new products and their solution. So, I want to share this example with class. May be it would be helpful to clear the ideas.

Appleiphone

Scenario: "Yo! We'll introduce our product with a Bang! We'll splatter it across metropolitan newspapers. Billions! Give me a high-five!"

Usually, conventional entrepreneurs are over confident and therefore, they over estimate the market conditions

It goes through a similar cycle:

  • Yo, I'm gonna build the next billion-dollar widget. Yay!
  • Entrepreneur builds product.
  • Sells widgets.

Eventually, When they sell their product because of unforeseen problems, 90% of buyers start calling and complaining. "You people suck," they scream. Business's cash flow starts draining. In short, business shuts down.

3 comments:

rotatef said...

I'm confused by this post. The presence of an iPhone ad in the post doesn't seem to mesh well with what you've written: you're writing about why new products fail, and the iPhone is far from a failure. Do you have a more concrete example of the point you're trying to make?

Fatima Arif said...

I would second this comment. In my view point there is a contradiction between the theory & the example.

Ali Haider said...

i have mention that the new product is wedget(A small mechanical device). Which indicates that it could be any new product of apple iphone which faild in market.

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