Accelerating New Product Development and Successful Market Introduction

By Zahra, Shaker A.; Ellor, Diane | SAM Advanced Management Journal, Winter 1993 | Go to article overview

Accelerating New Product Development and Successful Market Introduction


Zahra, Shaker A., Ellor, Diane, SAM Advanced Management Journal


In today's markets, the speed of product introduction can spell the difference between success and failure. It is important to acquire market share and establish industry leadership. The company with the first product to the market can usually capture premium segments, build a strong name recognition, and control a large market share (Duffy & Kelly, 1989). This share can lead to significant economies that are useful in keeping rivals from entering the market.

Quick innovation and product introduction also increase a company's ability to respond to a fast changing marketplace. AT&T reduced the time required to develop a cordless telephone to meet global demand for the product. Similarly, Hewlett Packard cut its computer printer development cycle from 60 months down to 22, thus responding to the need for higher quality and speed in its printers. And, building on advances in electronics and growing market demands, Matsushta developed and introduced a washing machine that uses advances in fuzzy logic research in only one year. Similarly, Daewoo took only 15 months to develop and market its popular Leading Edge personal computer. European companies have also followed a similar approach. Recognizing the importance of this issue, The Conference Board--Europe has recently established The European Council on Corporate Strategy to promote exchange of ideas among executives on ways to accelerate new product development (Tank, 1991).

Speedy new product development (SNPD) and timely introduction have other crucial implications for successful competition in today's markets. Successive, quick new product or technology introductions help a company sustain its lead in a new market. This strategy enables the company to learn about its markets, make changes, and then position the revised products (Hamel & Prahalad, 1991). American, European, Japanese, and Korean companies have applied this approach successfully. In today's constantly changing markets, the rewards of product pioneering go to firms that are committed to introducing products fast and making changes or modifications as quickly.

Ironically, in some companies bureaucracy, rigid structures, and outdated managerial decision-making processes conspire against the speedy introduction of new products and technology (Kanter, 1989). To succeed, these companies must demolish old product design and development patterns by applying new ways of organizing. They must experiment with new philosophies of management.

This article focuses on the managerial practices that enhance SNPD and timely market introduction, first reviewing the role of SNPD in determining a company's competitive advantage, and next relating it to breakthrough and incremental innovation patterns. Third, the article identifies effective approaches for redesigning innovation and managerial decision-making processes to promote SNPD. These three approaches stress the importance of cohesive, cross-functional approaches to SNPD. Finally, the article concludes with several recommendations for leveraging the advantages of SNPD.

Speedy New Product Development and Competitive Advantage

SNPD can provide an enduring competitive advantage as highlighted in Figure 1. A company gains a competitive advantage when it develops and maintains superior skills and competencies over its rivals. General Electric gained considerable experience from transferring its "best practices" across different projects. As a result, GE responded more quickly to its markets than its rivals, helping to establish the company as one of the top two competitors in each of its 15 business fields (Tichy & Charan, 1989).

Advantages from SNPD fall into two categories: strategic and operational. Strategic advantages include: preventing competitors from entering a segment or flanking a company's products or technology models; giving the firm an opportunity to set the standard for a segment, especially when the product is radically new; creating an initial monopoly for a firm in a given market; and establishing a firm's name recognition. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Accelerating New Product Development and Successful Market Introduction
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.