The New Product Development Essay Example

low production of utility vehicles, allowing the company to capitalize on returns and leverage competitors' market share. Ultimately, this decision will lead to increased production of products that meet customer demand.Despite facing intense competition, the company has managed to outperform its rivals, especially in the fashionable sector, as demonstrated by environmental analysis. The utility sector aims to enhance its performance by establishing a new development center and adopting new technology. An important issue during this period is the need for technology that supports the newly established development centers. Upgrading the luxury car is a strategic move to position it as a superior and more appealing option compared to the family car, thereby boosting sales. Furthermore, there are plans to develop a high-end sports car to meet demand in the luxury market and establish a strong presence in this segment. The economic environment has presented challenges with significant drops in vehicle prices and a decline in market shares for the company. Despite investing 20% of sales into research and development, overcapacity remains an ongoing concern. Keeping Technology unchanged is crucial since the current products have not been performing poorly. Additionally, implementing new technology would be costly given these challenging economic times but would ultimately result in reduced expenses for the company. More marketing efforts are needed for First-Class and Fantastic models as they performed below expectations compared to other models with only a 17% increase in sales.To enhance sales, it is vital to intensify marketing efforts and promote these products to potential consumers. This will help position the products in their minds and ultimately lead to increased sales. The company's underperformance necessitates Environmental Analysis training. By

undergoing this training, the company can potentially increase returns by approximately $40m. The unsatisfactory returns and decline in production capacity (from 71 to 60 units) within the first-class sector are primarily caused by significant operational issues. To address this, upgrading the first-class models is necessary as it aims to decrease per-unit costs and overall vehicle expenses, resulting in reduced prices of the vehicles. Consequently, this would attract more customers and lead to a higher number of purchases. Upgrading the Free-Spirit (Utility) models is crucial as well since it would enhance their appeal and attractiveness to customers in the 4U category, thereby increasing the company's value. The objective behind attracting more customers in this segment is to achieve higher product prices and improved returns for the company. In terms of environmental analysis, technology upgrade across various sectors is a key factor that needs attention, particularly focusing on free-spirit and luxury sectors. Another major operational concern pertains to using spare money for repurchasing company stock with an aim of reducing excess liquid cash while simultaneously increasing stock price.
However, if the cash is spent and the stocks do not respond, it could have catastrophic consequences for the company. The objective of this decision is to enhance marketing of the Flash. The aim is to effectively reach potential customers and increase awareness of the product, as there is currently relatively low awareness. Implementing this strategy will lead to greater awareness and eventual increased purchases.

Another decision aims to adjust numbers accordingly in order to lower overall prices compared to competitor D. This adjustment is intended to boost luxury sales to around 80k + flex, free spirit production to approximately 40k

+ flex, and break sales for the Flash at 70k.

In terms of environmental analysis, advancements have been made in technology within the company's Interior sector, ranking it at 7. Efforts have also been made in product development to make the Free-Spirit more appealing to customers.

There are significant performance operational issues arising from a decline in market share among Achievers. Market share has dropped from 50.9% to 44.5%. Based on previous successful performance, the segment aims to enhance competitiveness of the First Class which has been underperforming. This will be achieved by increasing its inventory from 18k to 70k and upgrading accordingly.In addition, implementing a stock buyback will aid in raising the company's stock shares and stabilizing stock prices. This action will ultimately result in an enhancement of the company's value and an improved market positioning. In terms of environmental analysis, competition poses a significant challenge for the company, particularly from its main competitor, Delta. Historically, this rivalry has had an effect on market prices. Furthermore, the company faces noteworthy operational difficulties within the dealership market as it lags behind its competitor. This imbalance could potentially have adverse effects since customers tend to prefer assertive sellers.

To tackle these challenges and sustain growth, the company has made the decision to intensify marketing efforts and expand their store network. This strategic choice is based on recognizing that after periods of technological advancements and increased production capacity, it becomes crucial for the company to prioritize marketing their products.

Additionally:
1) Opening new stores is essential as it allows for efficient distribution of increased products in non-traditional markets, thus generating higher returns.
2) The economic outlook appears promising for the company due to

an 8% surge in car sales – a critical environmental factor that aligns with the company's focus on positioning.
3) Nonetheless, there has been a decline in the company's market share from 4.3% to 3.7%. While not currently a major concern, further decreases would have negative ramifications.