Competitive Advantage For Product Development

Competitive Advantage For Product Development. To gain a competitive advantage over other companies in your industry.

The sixth objective of product development is to gain a competitive advantage over other companies in your industry. This can be done by developing new technology. Or applying existing technologies in new ways that give your business an edge over others in your industry. For example, if you are selling mobile phones, you might develop a phone that has greater memory capacity than other phones on the market. Or maybe you develop a phone with extra features that allow users to do more things with their phones than they normally would.

Another way to gain a competitive advantage over others in your industry is by developing new distribution channels. And leveraging them before others do. Objectives are focused on increasing market share within an existing product category. And gaining a competitive advantage in the marketplace. There are three more objectives for product development that focus on increasing profits by developing innovative products. However, these objectives require innovation and differentiation as discussed.

Maintains company profitability

To develop a new product that is marginally profitable yet maintains company profitability.

To develop a new product that is marginally profitable yet maintains company profitability. 

Create a new product

To create a new product for which there is a demand but for which the market cannot be identified yet.

To create a new product for which there is a demand but for which the market cannot be identified yet.

Develop new product

To determine whether there is a market for a successful new product and then move forward by developing it, launching it, and servicing it.

These objectives are focused on increasing profits by developing innovative products that require innovation and differentiation as discussed in objectives 1 through 6 above, as well as having a clear understanding of the market needs, wants, and desires.

How to Create New Products – A Practical Process

In order to effectively create new products, you need to be familiar with the process and understand how it works. The four steps associated with the product development process are:

1. Research and Planning
2. Concept Development
3. Concept Evaluation
4. Finalize and Launch your Product to the Market

Research and Planning at a Glance

Step 1 involves researching existing products, markets, competitors, technology, and future trends in order to understand the opportunities that exist within a specific area of business. Further research is conducted to determine what consumers want and why they want it, as well as how much they are willing to pay for it. 

Once the information is gathered and evaluated, the plan should be put together with the following elements: a product concept statement, a marketing strategy, a design brief, a development timeline, a development budget, and a production budget for the prototype or pilot run. It is important that each of these elements is addressed in order for the product development process to be successful. 

This step also includes an evaluation phase that includes everything from market research to financial analysis in order to determine if the product will meet an existing need and provide a sufficient profit margin for your business. During this phase, you should create an ROI (Return On Investment) analysis in order to determine whether or not it makes sense for your company to move forward with product development. Once all of the data has been gathered and analyzed, you should have enough information to make an informed decision about whether or not you should move forward with product development.