Product Development Strategy
Creating a product development strategy means describing a particular process that enables you to bring a product into a market. This may include identifying concepts, asking for feedback, creating prototypes, preparing campaigns, producing a product, and making adjustments that suit the favor of the market. Every management team should play a very important role in developing a specific product. When we say product development, it is usually incorporated with the following teams: product management, manufacturing, design, sales, distribution, marketing, testing, and support.
4+ Product Development Strategy Examples
1. Product Development Strategy Template
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5. Standard Product Development Strategy
Product Development Strategy Definition
A product development strategy is a type of process that allows you to bring innovations into the market through distribution. This undergoes the process of having a concept about the innovation to product testing. To achieve market success, the company must provide itself with a methodology that plans out how to move the product at each of the stages from concept to the launching stage. New product development strategies would always seek existing products that have been proven to be improved to comply with the market needs.
Importance of Product Development Strategy
1. It helps in aligning the team back to their goals and priorities – this will get the team be reminded of their decisions throughout the process of development especially when challenges arise.
2. It gives necessary feedback as to the steps they have taken in the process of product development – a certain team will be in a good position to know whether they have to take or proceed with their original plan or to have another set of priorities first.
3. It provides an efficient way for the development process – a company will be able to define needed resources and to estimate timeframes throughout the duration of the cycle. This will help them have a clearer understanding of the initiatives and which one does it need to improve next.
Examples of Product Development Strategy
Amazon Product Development Strategy
Amazon is an example of a customer-oriented approach to product development strategy. Their product strategy is focused entirely around customer needs. Amazon likes to work backwards from the target market. They write the press release for the product first, and hone it until its language is simple enough for anyone to understand. The press release has no technical jargon about technologies or UIs. They then work backward from the press release to the product. This is a product development strategy that focuses on Amazon’s internal process, in engaging with customers to create a specific product that meets an identified need.
Apple Product Development Strategy
Apple is an example of a platform/derivative strategy that connects their top level strategy to their product development process. The tech giant tends to be product-driven. Apple creates products and then finds the market for them later. Steve Jobs famously suggested that customers do not always know what they want. Apple bets that customers will pay a premium for superb products and tends to focus on optimizing existing offerings. It relies on brand loyalty and is happy to allow competitors to control the market in lower-priced products that compete with Apple’s.
Google Product Development Strategy
Google’s new product development strategies tends to be technology driven. Google bets on technology “to solve a big problem in a big way.” This is a market oriented approach since Google favors growing the market for everyone, which serves Google as the market leader. Google also optimizes for growth, not for revenue. Google’s product development strategy takes the long view; it is typical of a company that has been a consistent market leader.
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FAQs
What could be the first step of the new product development process?
The first step of a new product development process is to focus and assemble your team to get product ideas. Prepare a simple list of concepts for research and evaluation.
What is new product development process?
New product development process is the act of taking a particular product or service from the stage of concept making to market. This sets stages that a particular product has to go through.
Why do we have to improve existing products?
Improving existing products is not expensive and is one of the most efficient method for product development. You have already gave most of the time and resources in creating the original product so you won’t be having a hard time improving it.
Whether you are going to improve or create a product, always prepare for a product development strategy and follow the process to ensure that costumers will go for it. This is about identifying the market needs. A product development strategy not only adheres to helping a company grow in business industry, it also aids in finding the correct path to take to compete with other businesses to stand out.
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