Introduction
Dealing with any kind of business, every company faces the necessity to develop the new products and launch them into the markets so that to catch up with the constantly developing competition and preserve of facilitate its market position and market share. Sooner or later, any company comes to the point when the products it offers are outdated, and this is when the product development teams come into play generating new ideas and trying to carry out production according to the major product development stages.
In this process, it is necessary to pay attention to the company’s internal factors and the external ones, i. e. political, economic, or demographic factors. The modern business also demands the company to have good command of e-commerce to stand to the progress of this one of the currently most influential areas of business (Tassabehji, 2003).
Company Background
The company chosen for the analysis of its new product ideas is an imaginary NYSpeak, serving as one of the largest mobile operators in the Eastern part of the United States. Apart from offering mobile connection services, NYSpeak develops and sells the innovative technologies in the sphere of communication. In other words, one of the major areas of its activity is the development of the most updated mobile telephones conforming to the latest customer’s wishes and market demand trends. In 2009, the company under consideration has faced the necessity to launch new products to the market as it has started losing its market positions from 30% of the market share to 26% and the decrease has been steady. Therefore, the company considered the three product ideas as relevant to the current demand.
Product Development
Three Product Ideas
Needless to say, the product development team of the NYSpeak has recently come out with the ideas of three products that could satisfy the current demand and conform to the requirements that the customers tend to have in the era of information technology and fast progress (Ecommons, 2009). The first idea is the 4G mobile phone with the functions of video calls and 40GB hard disk memory allowing the customers not only communicate but also enjoy their time listening to music or watching whole films through their phones. The second product idea is the 4G Smartphone equipped with voice mail, video calls, and an option of the automatic and free connection to iTunes. Finally, the third idea is the 4G1 Smartphone equipped, besides all the aforesaid options, with the instant messenger, installed wireless modem for internet connection, news alert function, and 120GB hard disk memory.
Product Development Stages
These product ideas have been developed by the NYSpeak to match the demands of the modern society that everyone admits. They are need of fast access to information, opportunities to communicate fast and at high-quality level. Needless to say, the product development stages have been strictly followed by NYSpeak in the process of product development (Ecommons, 2009). The first of those stages is the understanding of the needs and wishes of customers.
It is followed by the generation of the products design and creation of its concept. The next stage is the development of the testing variant of the concept in order to find out and eliminate the possible drawbacks of the product. Final design and the process of pilot production go next to be followed by the processes of the product commercialization, maintenance, and extension (Venturenavigator, 2009).
Final Product Concept
Rationale
Having considered the main stages of the product development, the NYSpeak development team and the CEO of the company have made the decision to stop their choice on the last option of the three offered, i. e. the 4G1 Smartphone equipped, besides all the aforesaid options, with the instant messenger, installed wireless modem for internet connection, news alert function, and 120GB hard disk memory. The rationale for such a choice was, first, the understanding of customers needs at the moment. The modern world positions those higher who posses and can operate with the information (Venturenavigator, 2009).
That is why the Smartphone allowing the user to be aware of the latest new, have the opportunity to instantly access the internet, etc. will undoubtedly enjoy the popularity among the most demanding customers. Moreover, the generation of testable models of two other product ideas proved to be too expensive and the potential profit from their sales not to cover the costs (Ecommons, 2009).
External Conditions
Needless to say, the external conditions also had their impact on the product development process and the very decision about the final product concept. First of all, every business entity nowadays has to be aware of the constantly changing situation in the world economy (Ecommons, 2009).
The recession that seems to be on its decrease can still affect the activities of every company in an unpredictable way if it is not handled accordingly. NYSpeak had to count with the economic conditions when it had to cut the scope of the 4G Smartphones production due to the decreased demand and revenues that dropped 30% last year. At the same time, the recent political changes, including the presidential election results and the potential shift of the US foreign policy allow the company to hope for international expansion, which provides for the potential facilitation of the activities of NYSpeak internationally (Venturenavigator, 2009).
Actions Taken
Based on all the factors considered, NYSpeak has had to take the following measures to ensure the proper idea development and the subsequent production and commercialization of their 4G1 Smartphone. First of all, the company under consideration has monitored the market demand and carried out the survey of customers’ needs and opinions as for the most desirable products for the present day (Venturenavigator, 2009).
In the process of idea generation and creation of the 4G Smartphone concept NYSpeak faced the need to eliminate one substantial drawback of the product developed, i. e. the inability of the battery to operate up to the time and energy consuming processes of information interchange, internet searches, etc. This drawback was eliminated by constructing the battery that allowed both larger capacities for Smartphone operations and simultaneous saving of energy used. After this, the testable variants of the Smartphone were produced and monitored in everyday operation to prove the possibility for their mass production and commercialization (Ecommons, 2009).
E-Commerce
Product Development
Speaking about the commercialization process it is impossible not to mention the importance of the E-commerce for it and for the whole product development cycle. This powerful tool of the modern business, defined by Tassabehji (2003) as “the conduct of a financial transaction by electronic means” (p. 5), is vital for any developing company as it allows the fast and large scale transactions to be carried out not only with the local companies but with the customers, suppliers, and partners all over the globe (My Own Business, 2009).
In the process of product development, NYSpeak implemented the e-commerce advantages in order to reach the suppliers from abroad, namely from Japan and South Korea, and to carry out the spare parts transportation at the lowest costs and risks possible. Finally, the international testing of the 4G Smartphone became possible due to the e-commerce that allowed the NYSpeak to distribute the testable concept to its international partners and monitor the potential demand for the product in foreign markets (My Own Business, 2009).
Product Commercialization
The role of the e-commerce in the process of the 4G Smartphone commercialization is also hard to underestimate (Tassabehji, 2003). First of all, after the refinement of the product and introduction it as a complete telephone model to the market in the USA, the company NYSpeak obtained the opportunity, though the e-commerce, to reach its international partners and to establish the treaties as for the distribution of the newly introduced product to the markets of their countries (My Own Business, 2009). Thus, NYSpeak managed to enter the European and Latin American markets and, what is currently most potentially beneficial, to establish partnership relations with Asian businesses that tend to be the most expansive nowadays (My Own Business, 2009).
Conclusions
To conclude, the development of new product ideas is the necessary condition under which the company can hope for the development of its market positions in the era of the constantly changing and developing IT sphere and market demand. In the process of product development the company needs to consider both internal and external factors and use the advantages of the modern technology, including e-commerce. NYSpeak is one of the companies that exemplify the best ways of new product development through their deep understanding of the market conditions and the ability o use this understanding for their benefit.
References
Ecommons. (2009). Product Development Stages. Web.
My Own Business. (2009). E-Commerce Overview. Web.
Tassabehji, R. (2003). Applying e-commerce in business. SAGE Publications.
Venturenavigator. (2009). Product Development Stages. Web.