Explain why research and development (R&D), marketing research, and product/service development are critical for an organization to sustain a competitive advantage. What is meant by the term Product Life Cycle? How does all of this process influence strategic planning?
An organization selling a product or service is not in a bubble. There are competitors in the market which compete for client. Therefore, you really need to stay up-to-date in the market. Market research will showcase if your product is falling behind and losing market share to competitors. R&D might find ways to improve your product, or update it, making it appear better to consumers. If you launch a project and no longer actively monitor its progress and then steps to correct any issues, you will find your product losing market share.
Product life cycle is a way to look at the introduction of a new product into the market. According to http://www.valuebasedmanagement.net/methods_product_life_cycle.html, these are the stages: introduction, growth, maturity and decline.
In introduction, the new product is placed in the market. In this stage, most people are not aware of the product. An awareness campaign needs to be developed to educate the public, perhaps in specific test markets.
In this stage, the company might want to consider offering an ...
A product life cycle is examined. The innovations for competitive advantage are analyzed. How the process influences strategic planning is discussed in the solution.