1. Why is New Product Development necessary? Importance of New Product Development strategy

Theme: New Product Development

Plan :

Introduction
The main part :
1. Why is New Product Development necessary?
2. Importance of New Product Development strategy
3. New product development process in 6 steps
Completion

Introduction

New Product Development (NPD) is a comprehensive set of multi-disciplinary processes that transform a market opportunity into a marketable new product to satisfy customer requirements.

According to Wheelwright and Clark (1992), NPD is defined as effective activity organisation and management to bring products to market with low development costs and short development times.
It’s sometimes also referred to as New Product Introduction (NPI) or new product planning and development, and it applies to both tangible products such as phones, coffee makers, TV, etc. and intangible products like mobile phone apps, software programs, etc.

1. 
   Why is New Product Development necessary?
   

NPD is the driving force of companies and vital for their organic growth. Insatiable consumer appetite, strong worldwide competition, changing consumer behaviour and technology, force companies to invest in new products to succeed or for their survival.

The importance of introducing new products can be summarised in these “Seven reasons why new product development is necessary”

• 
  Changing consumer
  

• 
  Increasing competition
  

• 
  Technological advancement
  

• 
  New opportunities (growth and development)
  

• 
  Risk diversification
  

• 
  To increase company & brand reputation
  

• 
  To utilise excess capacity