Business Administration 3301K Final: Final Exam.docx

• School: Western University
• Department: Business Administration
• Course: Business Administration 3301K
• Professor: Alex Mc Dougall

Document Summary

New market offerings provide value to both firms and customers, the degree to which they do this depends on how new they really are. Completely new-to-the market products represent fewer than 10% of all new product introductions. Innovation: the process by which ideas are transformed into new products and services that will help firms grow. Some estimates indicate that only 3 percent of new products actually succeed overriding long-term reasons compel firms to introduce new products and services. Sometimes companies can identify problems and develop products that customers never knew they needed (ex: basic car wash, a wash and polish, undercarriage wash) The firms take a well-known offering and innovate to make it more interesting. The longer a product exists in the marketplace, the more likely it is that the market will become saturated. Without new products or services, the value of the firm will ultimately decline.