ASSIGNMENT 17

1.Explain why there is not one best organizational structure for new product
development.
An organizational structure is a visual diagram of a company that describes what
employees’ do, whom they report to, and how decisions are made across the business.
In product development, there is no single organizational structure that stands to it.
Each structure ensembles one another. It starts with product management to design,
idea generation, packaging, quality and safety to testing.
2.Explain how sales representatives, especially with technology-intensive
products, play a crucial role in the success or not of a new product and illustrate
how their image as ‘second-hand car dealers’ is pejorative and incorrect.
Sales representative plays a pivotal role for the success or not of a new product. Since
sales representatives sell products, goods, or services to a customer, they work with to
find what customer wants, create solutions ensure a smooth sales process. They work
to find new sales leads through business directories, client referrals and like activities.

3.Examine whether the virtual world (such as Second Life) may be able to help
firms trial new products.
Virtual worlds may be able to help firm’s trial new products by integrating users into a
new interactive world. Connecting the emerging technology of virtual worlds allows
unique and inventive opportunities to capitalize users’ innovative potential and
knowledge. The latest advances of information and communication technologies enrich
interactive and improve development processes. Virtual worlds allow producers and
consumers jive together to create new products and permit companies to find an
audience to test, use and provide feedback on the content and products created.

4.Explain why the ‘Valley of Death’ presents a genuine challenge to product

champions or project leaders.
The Valley of Death is used as a metaphor to describe the relative lack of resources
and expertise in this area of development. The metaphor suggests that there are
relative more resources on one side of the valley in the form of research expertise and
on the other side by commercialization expertise and resources.  The Valley of Death is
a productive tool for identifying and understanding a critical area of development that
has not been adequately addressed.  Companies must understand the challenges in the
valley, must develop the skills, and must make resources available to master the front
end of product innovation. Recognizing roles, providing resources, and establishing
expectations and accountability in this area of development become manageable in light
of these results. Thus, surpassing the death of product in a valley.

5.‘New products are a necessary evil.’ From whose viewpoint are they necessary
and from whose viewpoint are they evil?
Business is not a ‘necessary evil’ – it has to be an ‘essential good’, whose role is going
to be ever more critical as we face up to the realities and challenges. Business success
and sustainability outcomes are mutually reinforcing and now go hand in hand. From
this view point, new products are necessary to producers and consumers but to
competitors they view this as evil.

6.Discuss the many reasons why so many new products fail. Are there additional
reasons?
In spite of the efforts made, some products fail. Product failure can be attributed to
some factors:
Poor quality – Regardless of how innovative the product is, quality must be at the core
front of the product;
Higher price – Certain products fail because of price factor. So production and
production cost must be lower to ensure price affordability to middle and lower income
buyers;
Poor timing – it is necessary that product must be introduced to the market at the
correct time to be successful.
Inherent defect – There may be an inherent defect that affects its market potentials.
Even if the defect is corrected later, it tarnishes the product’s credibility;
Extent of competition – Once the market has various supplier of a certain product, the
buyers have many alternatives. Unless the producer brings the product to the
satisfaction of the buyer, it will fail;
Lack of promotional measures – Popularizing the brand is essential and ensures long-
term benefits;
Faulty distribution policy – The importance of right market at the right time and at the
right for a product ensures success;
Unavailability of spare parts - Unavailability of spare parts frustrates buyer. Thus, won’t
recommend the product to their friends and relatives;
Poor after-sales service – The quality of an after-sales service is very crucial. It
determines the viability of certain products in the market;
Product imitation – The presence of imitation products in the market makes the genuine
product vulnerable. Buyers may not be able to distinguish the genuine versus the fake
one.