MARK1012 Study Guide - Final Guide: New Product Development, Market Saturation, Diffusion Process
Document Summary
Continue to market current products to current customers or to take same product to another market with similar customers: with innovation, growth trajectories for firm widen dramatically summarised by ansoff. Matrix (product/market expansion grid) which suggests that firms have 4 choices when deciding which growth strategy to adopt. Managing risk through adversity: through innovation, firms often create broader portfolio of products which help them diversify their risk and enhance firm value better than single product can. If some products in portfolio perform poorly, others may do well. In industries that rely on fashion trends and experience short product life cycles, most sales come from new products. Innovation may sometimes be used to improve relationships with suppliers and other intermediates to enhance value creation. 34% of population crucial because few new goods and services can be profitable until this large group buys them.
