GMS 401 Chapter 4: Ch 4; Design of goods and services
11 Oct 2017
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Generating new products: products die, thus new ones need to take their place as they are used to make profits, organizations build structures internally with customers, innovative organizational cultures, aggressive r&d, strong leadership, formal incentives and training. Product decision: the objective of the product decision is to develop and implement a product strategy that meets the demand of the market place with a competitive advantage; defined as selection, definition, and the design of products. Product strategy options: differentiation, low cost, rapid response. Strategies will change as the product moves throughout different stages in its life: thus it must be revisited often. Introductory phase: still being fine-tuned, thus there will be unusual spending for, product development, process modification and enhancement, supplier development. Growth phase: product design is being stabilized, effective forecasting for its capacity requirement, adding capacity or enhancing existing capacity to increase its demand, new iphone software updates.
