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Development of a New Commodity/Product
This is one of the three approaches of intensive strategies. In this method, a company try to improve the sales and competitive position through various modification or improvements in the already existing product of the company. A large amount is spent as expenditures which are related to product development. This is because product development requires proper research and other development activities for improving and modifying commodity.
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Particular Guidelines for Effective Product Development Strategy
There are certain scenarios which would make product or commodity development approach a lot more useful. Below are mentioned a few guidelines for effective strategy:
- When a commodity is going through its life cycle’s mature stage
- Occurrence of technological advancements in an industry is useful for implementing a plan for developing a new product by related companies
- Most competitors in the market offers good quality commodities at low rates
- An industry which portrays high growth is convenient for this product development method
- Organizations with research and development potential are the most appropriate for this method
These guidelines are followed by companies before implementing this strategy. Our Product Development assignment help gives more information about this approach.
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