The importance of introducing a new product.
by Tebello Hlalele
A company cannot survive for long periods on a single product. ” On average, only about seven years” answers Neil Jacoby, CEO of Futureworld when asked, how long a company can survive with one product. We live and do business where forces in the rapidly evolving environment, continue to compel businesses to reconsider their existing products.
A thorough re-evaluation of existing products will either remove products or enhance products. The re-evaluation of products is a must in business for its survival.
The following are reasons why re-evaluation of existing products is vital.
- To Pursue profit and growth
Due to the product life cycle, a product goes through phases of growth and ultimately they decline. In the decline stage, a product can no longer serve its objectives. Perhaps due to technological developments and/or losing market share to existing or new competitors.
When an existing product does not serve its objectives. A new product or an innovation of the existing product is to be introduced. Companies like RunFs has introduced bottled water to their brand. Keep growth of the brand at the front of your plans.
- Product Replacement
As a product goes through it’s life cycle, it’s life span becomes shorter. Giving an opportunity for a replacement product. A replacement product can be in a form of a new product or an enhanced product. Business exists in an ever changing environment. People are basically moving with the times.
For instance, Nokia took time to tap into the the smartphone industry. People went to IPhones, Huawei and other Android powered phones. By the time Nokia released a smartphone, people were already “won” by other smartphone companies. Do not delay in replacing your product.
- Remain Competitive with new products
Competition that exist in business pressures marketers to come up with new-product strategies. In an event where your competitor develops a new product and you stay behind, the competitor gets a chance to open up a new market.
By the time your business decides to get into the market at hand, you are going to have to work twice as hard to get a market share. So therefore, it is rather better to be safe than sorry.
When a company develops a new product, they open opportunities to cater for other customer needs. When a new smartphone is released. Ancillary products like cellphone chargers for when you are in your car, headphones, phone pouches and so on, compliments the new product and ultimately, competitive edge as well as profit.
Every time a new product is introduced, other products are also introduced. A company that fails to refresh its product mix from time to time, will find survival harder than others.
Remember the name of the game is no longer about the survival of the fastest but rather, survival of the fittest. It is no longer a sprint but rather a marathon.
For social media platforms, people can follow me on twitter @Panda_Hlalele and Tebello PandaPrenuer Hlalele on Facebook.
Until next week, bye-bye for now.
Tebello “PandaPreneur” Hlalele
Business Collumnist: FS News Online
Tebello is writing featured articles for FS News Online, weekly. He covers various Business related topics and answer relevant questions.
About the Author: Tebello Hlalele, is a 23 year old entrepreneur, student and future leader from Meloding; Virginia, currently residing in Bloemfontein.