New product development and product innovation charter Essay

New product development and product innovation charter - Essay Example Therefore, a white product manufacturing company must understand that technological advancements are the key to success in the market (Avlonitis & Papastathopoulou, 2006). 1. a) Product innovation charter entails product planning and strategizing prior to its development. PIC charter summarizes all the necessary tools that a company’s development team should draft to come up with new products. The charter ensures that a product developed under it targets to achieving the company’s goals and objectives. Thus, the specialists must abide to PIC if they target to ensure their development is for the best of the company once it is in the market. It enables the team to set the product’s objectives in accordance to sales forecasts. A product will product will be of critical importance to a company if only it will draw positive attention from the consumer markets, as this is the only way of improving sales margins (Annacchino 2007). Similarly, sales should be profitable t o the company at the long run as far as the company is a profit making organization. Further, a significant development is that which enables a company acquire a higher market share relative to its previous one. Managers and product developers should focus on improving the market share competently and profitably (Avlonitis & Papastathopoulou, 2006). b) Every company has a mission and vision in its business field. Therefore, to come up with the best results of every innovation, the team should consider the goals and objectives of the company. For example, if a company’s mission is to enhance economic growth and customer satisfaction, the new product should entice the consumer to feel closer to the company and on deriving satisfaction from his purchase, will mean profitability to the business. Since perfect market competition is a rare case, a brilliant innovation will enable the company to grow in the market and undermine competitive threats. Eventually, a company shall pose a positive image to the society and other business affiliates if only the charter refines its image through healthy innovations (Karniel & Reich, 2011). c) The challenges that come with every innovation are as well overwhelming. Managers should understand that product charters only reveal prospects and not certainty. The criterion often tends to control development teams to operate within distinct procedures. Therefore, the team may develop a product that suits specific needs. This results to reduction of sales prospects, profitability, and market segment. The company finds realizes to be loosing worth an investment to a nonperforming product. It is advisable that companies should endure on practicing the best details a product innovation charter can offer in relation to the company’s goals and objectives (Karniel & Reich, 2011). 2. a) The key factors to that influence companies to concentrate in new product development programs are diverse. Companies find that all markets pos e competition and to ensure co-existence they must come up with products that place them above per. Other companies seek to maximize profits and after careful revision of the products that they already offer in the market, they realize the need of a new product that will profitably benefit the company in its operations. Companies notice that, whenever new products hit the target market profitably economies of scale reflect positively, and the rate of growth draws a positive view from their affiliates (Avlonitis&