Reference no: EM132178713

Delaying Introduction of a Product

A firm can use its launch timing strategy to take advantage of business cycles or seasonal effects, to influence its positioning competitors, and to ensure that production capacity and complementary goods are sufficiently available at the time of launch. The launch timing decision must also consider the need to harvest cash flows from existing product generations versus the advantages of allowing cannibalization of existing products to preempt competitors. Successful deployment requires striking a careful balance between making a system open enough to attract complementary goods providers (and/or other producers if that is desirable) and protected enough to ensure that product quality, margins, and compatibility can be sustained.

Intended Outcomes

Identify circumstances under which a product should be delayed in the marketplace.

Identify factors that influence an organization's pricing strategy.

Recognize differences in marketing strategies.

QUESTION:

Identify one or more circumstances when a company might wish to delay introducing its product. Give an example.

Why is it important for an organization to evaluate product introduction?

Give an example of a poor launch of a good product. Explain why the launch was poor and what effect it had on the success of the product in the market.