Assignment Document

A firm can lead to succeed its proceedings by being a pioneer

Pages:

Preview:


  • "A firm can lead to succeed its proceedings by being a pioneer and innovator andthus building products with innovative technology and gaining the dominant position.(Ivan Abel, 2008; 3)As quoted by many, there is a fundamental principle ofachieving a ..

Preview Container:


  • "A firm can lead to succeed its proceedings by being a pioneer and innovator andthus building products with innovative technology and gaining the dominant position.(Ivan Abel, 2008; 3)As quoted by many, there is a fundamental principle ofachieving a higher success rate by being first in the market which is reflected in firmsinvesting huge sums in producing innovative products to gain the temporarymonopoly in the market. However, the first producer is responded at a quicker rate oftechnological advancement by number of rival firms and thus transforms thetemporary monopoly into fierce competition. For instance, Saehan InformationSystem was the first to launch a portable music player in 1998. It achieved a marketshare of 30% in the initial stages but later on came down to single digits. With thepassage of time, different firms came up with advanced versions of the musicplayers with added features; Diamond Rio (American Based Company) acquisition ofthe Korean company Digital Cast with patent rights and MP3 production technologyto capture a considerable 65% market share, Hango Electronics invented theadvanced versions of flash-based memory players which had a limited storage andthus soon competed by Personal Jukebox (PJB) by Compaq with higher configuredfeatures, i2Go a newly developed company succeeded with a stylish and smaller insized flash-based MP3 players which was a great success with a high price as adrawback. Until late 2001, over 50 MP3 players were in the market and hence a newidea could only be appreciated by understanding the needs of the customers anddeveloping a product with novelty. With the entry of Apple in November 2001, therewas a significant rise in the DAP market. It is studied to have identified and rectifiedthe problems faced by consumers and within a short span it captured a considerablemarket share and its success is regarded as due to vertical incorporation. It enteredthe market at right time and is considered as a low cost producer supplier whichgives it a competitive advantage. With the passage of time, Apple has created themost innovative products of all time and the current market share held by Applemusic players is 73.8%. (James Delahunty, 2009; September 9)Various studies have revealed the new product development to dominate but not theimprovement in existing commodities or manufacturing practice. However, othershave contradicted the point by revealing a different picture. It is true that the first inmarket holds an advantage but the customers are not only captured by the firstentrants only. The above case of Apple music players can be cited as the best37 example of being late, though timely, into the market and therefore dominating theindustry. (Ivan Abel, 2008) A firm need not be the first entrant but should aim toserve customers in the longer run. Further, the late entrants have an advantage tolearn from the first entrant`s success and failure products and therefore make amuch stronger understanding of the consumers. Pioneers often underestimate thehi-tech advancement, turbulent business environment and overestimate their pre- entry possessions and competencies which are eventually reflected in the firmsoverall results. The mistakes by the first entrants and their nature becomes asuccess factor for the later entrants but provided the approach adopted by the firms.Innovation is a complicated process and goes through various generations of theenhancement before it turn out to be the conventional product.38 ROLE OF INTERNET IN NEW PRODUCT DEVELOPMENTPROCESSThe emergence of Internet has led firms explore the market on a broader scale andthus plays a crucial role in the NPD process. For instance, its usage is observed invarious spheres; collection of competitive intelligence, concept testing, designing,reducing costs etc. (Teo and Chow, 2001; Dahan and Srinivasan, 2000; Croom,2001; 355)Internet can be efficiently used in various stages of NPD process.However, the research has shown the Internet emphasizes upon the processimplications. It is questioned whether Internet can complement the process bydeveloping successful products or its approach is limited to efficiency.Internet helps firms incorporate their needs by efficient integration and coordinationof NPD activities. (Calantone and di Benedetto, 1988; Cooper and Kleinschmidt,1987; Garvin, 1988; Calantone et al., 1996)It has helped the firms to greatly reducetheir costs, is widely available, standardised and therefore providing high-qualitymarket information. (Afuah, 2003; Hameri and Nihtila, 1997)Consumers, producersand the various departments can interact more passionately in order to gainmaximum out of the process. A firm`s technological strengths and abilities is observed to be advantageous inorder to develop new products resourcefully. (Cooper, 1996)Researchers haveproved the enhancement of technological synergy in the NPD process throughInternet in numerous ways. (Calantone et al., 1996; Song and Parry, 1997; 358)For instance, the documentation is carried out better with the help of Internet whichfurther helps the firm to assess and review the technical requirements during theprocess. (Kehoe and Boughton, 2001)The biggest advantage of the Internet is theprototype testing devoid of even developing the prototype. (Dahan and Srinivasan,2000; 358) Most firms adopt this method by developing a virtual prototype in order tounderstand their consumers better. The prototype model is based upon the revolvingaround the consumer theory. Big giants like eBay are businesses based uponprototyping. An interactive TV set-top box sculpts of Apple prototypes appeared oneBay in 1995 which is now well established as Apple TV. (Admin, 2010; May24)Internet growth and contribution can be reflected in Apple brand along with many39 "

Why US?

Because we aim to spread high-quality education or digital products, thus our services are used worldwide.
Few Reasons to Build Trust with Students.

128+

Countries

24x7

Hours of Working

89.2 %

Customer Retention

9521+

Experts Team

7+

Years of Business

9,67,789 +

Solved Problems

Search Solved Classroom Assignments & Textbook Solutions

A huge collection of quality study resources. More than 18,98,789 solved problems, classroom assignments, textbooks solutions.

Scroll to Top