For each successful new product, many new merchandise ideas are created and thrown away. Therefore , businesses usually create a large number of ideas from which effective new products arise. I are a strategic administrator in Solarland Co., Limited. This company does business of electronic home appliances. As a Strategic Manager, I have been directed simply by my BOD to introduce a new item in Bangladesh. I want to expose a Photo voltaic Based LED TV which is run with solar system, which is without electrical energy people should be able to watch TV.
So I have gone through my know-how which I attained from my personal Strategic Supervision course make a draft of my own proposal for them. The draft of my personal proposal intended for introducing a fresh solar centered LED TELEVISION SET is mentioned below.
1 . Idea Technology
The new application process commences with idea generation. Proper management is about selling a concept. So as a Strategic manager I use created the new product idea of Solar power Based LED TV.
I have made this idea as I need to capture a fresh market in which people do not have enough electrical power or else they will be able to safe electricity expense. This new product can define the overall personality and quest of our firm.
2 . Thought Screening
Idea screening, the second step, considers the new merchandise idea of having a Solar Structured LED TV. At this stage I consider not only the business’s manufacturing, technology, and advertising capabilities, but also the way the new idea fits with all the company’s eyesight and strategic objectives. During screening the idea I consider some facets which are extremely important like:
What are the uses of the business?
What image should the organization project?
Precisely what are the beliefs and sagesse that the business desires their members to posses?
What is the organizations business?
How can the organization ideal fulfill it is corporate objectives?
3. Concept Development and Testing
Another stage, concept development and testing, needs formal evaluations of the merchandise concept simply by consumers, generally through some kind of marketing research. As a tactical manager, to formulate a self-concept is very important. Self-Concept refers to the distinctive proficiency or key competitive benefits of the company. In the event of concept screening, the existing strategic plan must be compared with the best plan which may be developed at any given moment in time. So the best conceivable strategy becomes the normal. The degree where the existing prepare varies from the conventional and the cost of that variant compared to the cost of revising the program will identify whether further action ought to be taken.
Determine 1: New Product Development Method and Strategic Factors 4.
The business analysis stage is usually next. At this point the new product idea is analyzed because of its marketability and costs. Following passing the first three stages an idea may be thrown away once marketing and manufacturing costs are assessed, due to limited potential for earnings or business success. I could do it through Porter Five Forces analysis.
Figure 2: Factors of Industry Analysis
Threat of recent entrants
Successful markets that yield excessive returns will attract new businesses. This leads to many new traders, which eventually will lower profitability for any firms in the market. Unless the entry of new firms can be blocked simply by incumbents the abnormal earnings rate will certainly trend toward zero (perfect competition). Thus i will examine the threat factor of new entrants. Pertaining to my new product I found that potential risk of new entrants are very low.
Threat of substitute products or services
The existence of items outside of the realm with the common item boundaries boosts the propensity of shoppers to switch to alternatives. And so i need to examine whether there is certainly any existing or potential substitute of the new product. Since this new item will work devoid of electricity, and so threat of substitute method very low.
Bargaining power of clients (buyers)
The bargaining benefits of customers is also described as industry of results: the ability of shoppers to put the firm pressurized, which as well affects the customer’s tenderness to price changes. The customer power is usually high if the buyer has its own alternatives. We are able to take procedures to reduce customer power, such as implementing a loyalty system.
Bargaining benefits of suppliers
The bargaining power of suppliers is additionally described as the market of inputs. Suppliers of raw materials, parts, labor, and services towards the firm can be quite a source of electrical power over the company when there are few substitutes. Suppliers might refuse to assist our company or charge excessively high rates for exceptional resources. Thus we need to be aware about that.
five. Prototype Expansion
The fifth stage, modele development, at this stage the concept is usually converted into a proper product. A buyer value point of view during this period means the product is designed to fulfill the needs stated by consumers. We may work with quality function deployment (QFD) as we develop the modele. QFD links specific client requirements including versatility, durability, and low maintenance with specific product characteristics (for example, changeable shelves, a door-mounted glaciers and drinking water dispenser, and touch handles for a refrigerator). The customer value perspective requires the new product to satisfy client needs and meet preferred quality amounts at particular production costs.
6. Test Marketing
In Test marketing we will test the prototype and marketing strategy in simulated or perhaps actual industry situations. Due to expense and risks connected with actual test markets, we should use them with caution. In the event the product testing poorly, it will be pulled back and re-conceptualized or discarded. six. Commercialization
Commercialization, the final level, is if the product is released fullscale. The amount of investment and risk happen to be highest at this stage. At this stage we all will consider consumer usage rates, timing decisions to get introduction, and coordinating efforts with creation, distribution, and marketing.
PROPER FACTORS INFLUENCING NEW
Organizational Composition and Lifestyle
Organizational framework, leadership, and team building influence the speed and efficiency with which new products happen to be introduced. Framework influences efficiency, autonomy, and coordination. New product innovation needs structure that optimizes direction and guidance. Structure that facilitates internal information exchange, decision making, and materials movement is essential. A “fast-cycle framework allows more time for preparing and putting into action activities to achieve competitive edge. This type of framework also slashes costs because production elements and information collect significantly less overhead , nor accumulate since work-in-process products on hand. Autonomy identifies the amount of making decisions allowed in lower numbers of management. The coordination from the engineering, merchandise designs, making, and advertising functions inside the new product development process is critical.
Command influences technique, culture, as well as the firm’s overall ability to undertake new product creation. Top supervision can display involvement inside the development method by providing career advancement for gumptiouspioneering, up-and-coming skills and encouraging broad worker participation. Quality and eyesight are crucial to ensuring that new product ideas are great strategic suits for the business. The degree that leadership enables trial and error and promotes specific initiative absolutely influences the introduction of new products. This kind of acceptance of risk and support to get an pioneeringup-and-coming spirit in the organization are crucial in order for creativity to grow.
New products emerge in a variety of ways and their development will not always move forward in logical and regular manners. It is crucial for management to view the method as iterative and active, and to foster adaptation and flexibility. Management overall flexibility and responsiveness tochange also are needed. This type of leadership is specially important to the project director who must coordinate and integrate the many parts of the newest product development process so that a coherent program emerges that produces a merchandise with persuasive value. Motivation encourages creative imagination and problem-solving skills.
Teams provide mechanisms to get breaking down efficient biases produced by a strict adherence to structure. How much interdepartmental conflict in the organization, the interpersonal cohesion among team members, plus the frequency and directionality of interdepartmental interaction influence team development. Through shared understanding of the objectives and purposes in the project, as well as the tasks required in the creation process, groups can form the job and influence how work gets done in the organization.
These day technology continue to be change and create fresh opportunities and threats. Client requirements and expectations carry on and shift and create fresh demands. Older channels of distribution have grown to be obsolete and new channels are beginning new options. Some competition are falling by the wayside and some are surging to the cutting edge by making new and sudden moves to gain advantage. The actual structure of industry is definitely changing. An important to accomplishment in this turbulent environment will still be the ability to support a competitive advantage through innovation. However , speed, efficiency, and quality in product development will be very important. Building capacities in all aspects of product creation and execution, overcoming uncertainness and facilitating decision-making, ensuring these innovations are smartly linked to the business’s vision, and doing this on the continuous basis is the concern of new product development in the next hundred years.