COMMERCE 2MA3 Lecture Notes - Lecture 15: The Lego Group, Pharmaceutical Industry, Failure Rate
25 Oct 2016
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95% newly launched consumer products fail (some not even lasting more than 3 months on the shelf) Blockbuster drugs: sell at least 1 billion dollars worth every year. Given the amounts pharma companies spend on research and development they need at least two blockbuster drugs out. It takes minimum 7 years to come up with it. Marketing has had a strong influence on success of products. Companies have systematic processes where if an employee has a good idea you can submit it. Note down good ideas within half an hour and then transfer it onto your laptop and its in a file. Make sure you start that idea within 6-12 months otherwise it will get outdated. Test out feasibility of ideas from suggestions. A good idea may not be able to necessarily sell. There are formal processes companies have to generate, collect and test out these ideas. The company began to lose relevance because kids were using computers.
