Delaying Introduction of a Product A firm can use its launch timing strategy to
ID: 426928 • Letter: D
Question
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.
Explanation / Answer
A company might wish to delay the introduction of the new product in the market due to various reasons. They might choose to delay if they have an existing product and there is generation of cash flow and no probable competitors. It might also be a strategy where the company might be waiting for the season to change if this is a seasonal product or there is supposed to be a change in business cycle. They might also wait so that the production capacity of their manufacturing plants is upgraded to meet the customer demand. They might also wait for the advertisement to build up the tempo and curiosity in the customers for the product.
Why is it important for an organization to evaluate product introduction?
The organizations should evaluate the product introduction so that they know that the product is needed by someone or not. The product launch should be worthy of investment, time and effort. The competition for the particular product should be evaluated. You should be able to evaluate as to how much time the competition will take to catch up on the product and also how much time is needed for the company to generate a healthy profit. The company should also be able to evaluate the fact that will they be able to provide the after-sales service for the product or not. If the customers are not happy with the after-sales service, the product can take a nose dive in popularity. Company should have a good product pricing plan. Pricing strategy should take into account the market competition, product quality, market conditions and competition marketing and pricing strategy. The major evaluation point should be that the product should have the ability to change and innovate according to the market, customer demand and times.
By evaluating new product, the businesses can greatly increase the chances of succeeding in the market.
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.
In today’s Modern world, one of the major product failures is Amazon Fire Phone. Amazon never evaluated the product and was satisfied with their current market. They never checked if the device was efficient and the product design was never appealing to the customers who wanted the device to look smart. Amazon never evaluated the market of the product and therefore, the product failed.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.