product development


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product development

a BUSINESS STRATEGY pursued by a firm aimed at increasing sales by developing new products which can be sold in its existing markets (see PRODUCT-MARKET MATRIX) or new products which take the firm into new markets. (See DIVERSIFICATION). In the former case, product development is especially important given both the life-cycle tendencies of products (see PRODUCT LIFE CYCLE) and in maintaining the firm's competitiveness. Most individual BRANDS follow a typical cycle of introduction, growth, maturity and eventual decline so that it is vital for the firm to develop and launch a constant stream of new brands to replace those in decline. Moreover, the ability of a firm to introduce innovatory new brands is often a key means of establishing a COMPETITIVE ADVANTAGE over rival suppliers. Developing new products involves the firm in undertaking MARKETING RESEARCH and committing resources to product RESEARCH AND DEVELOPMENT. See NEW-PRODUCT DEVELOPMENT, BOSTON MATRIX, PRODUCT-MARKET MATRIX.

product development

the process of developing new products that a firm can sell in its existing markets or new markets.

Given the dynamic characteristics of markets, which tend to grow and decline over time (see PRODUCT LIFE CYCLE), it is important for firms to develop new brands to supersede those that are beginning to decline in popularity. Furthermore, the ability of a firm to introduce new products embodying superior product and performance attributes can improve its competitive position over rival suppliers in OLIGOPOLY markets where suppliers compete mainly in terms of PRODUCT DIFFERENTIATION. See PRODUCT MATRIX, RESEARCH AND DEVELOPMENT.

References in periodicals archive ?
"Product development not only hinges on innovation, but also on relevancy," explains Molly McBride, RD, LD, corporate dietitian for The Kroger Co., Cincinnati.
"By augmenting Mack's capabilities with engineering resources skilled in proof-of-concept, pre-clinical R&D, and product development from design to pilot manufacturing, everyone wins.
PTC, The Product Development Company, develops markets and supports product development software solutions and related services that help companies achieve their product development strategies and optimize their processes.
Chrysler Group has now added NX(TM) software, Siemens PLM Software's comprehensive digital product development solution, to provide efficiency gains in engineering and design and to help create a common product development platform.
Practices for scaling lean & agile development; large, multisite, and offshore product development with large-scale Scrum.
And as the complexity of drugs and their associated process steps and test methods escalate, so do the consequences of poor choices in the product development process.
ENGINEERING product development and testing facilities are being created at the business incubator facility in Llanelli.
The Middle East medical technology industry is on the threshold of a major breakthrough with the launch of a world-first in the Philadelphia Biological and Medical Product Development Centre in Jordan, according to Peggy Farley, Managing Director of the General Partner.
Suzanne Cant, who was a qualifications officer at the body before progressing to qualifications leader and then head of qualifications, has been made research and product development manager.
They can indeed be applied to a lot of industries for new approaches to product development. The web can be used to put users in control and co-create better and richer products in a reduced timeframe.
Firms should also empower people by appointing and developing a product development champion and a team which is committed to the new product development process.

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