How does the New Product Development process for overseas markets differ from a domestic focus? What factors are crucial to the success of international NPD?

Résumé du document

A launch of a new product is one of the most popular strategies adopted by firms when wanting to gain exposure to the international market. Both tasks of launching the product as well as receiving international assimilation is a herculean task considering the international business where the existence of a dog-eat-dog attitude is prevalent. However, when a company decides to accomplish this mission and vision, it gives rise to a number of questions. The most fundamental questions that are brainstormed prior to actioning the ideal goal are:
? Can our domestic product capture the attention of the international consumers?

? Do we need to realign our product so as to meet the requirements of the foreign customers?
? Does our product development process require a renovation in the field of internalization?

It is inferred that one question and its answer leads into the subsequent questions and the process goes on and on. It should be noted that it is vital that the firm answers all the questions prior to entering the international zone.
In this file, we will cover the aspects of a new product development process in foreign markets (including the advantages and disadvantages). Further, we will focus our attention on what can be changed or a reformation process to succeed internationally. Launching a new product is an absolute challenge for a company especially in the present situation when the global economy still remains in the doldrums.

Extraits

[...] The same is true for other brand names with a global consumer franchise, such as Coca-Cola, Kodak, Sony. But language problems may encourage firms to find different brands for different markets. It is the example of Chevrolet; the mark is Opel in France and Vauxhall in UK. Product services For those goods that require services facilities, servicing has a very especial importance internationally. Customers tend to give preferences to national products because they fear inadequate after-sales service from a remote and foreign company. [...]

[...] Mandatory adaptation Mandatory adaptation involves those situations in which the firm adapts its product because some aspects of the foreign market require it to do. If the firm really want to enter the market and sell its product, it has to adapt itself and make the modifications necessary. One such factor for American or English firms is the metric system used in almost every country of the world, or the CEE label of quality. Many products cannot be sold in Europe if they are not certified CEE or NF for the French market. [...]

[...] Therefore, knowing the foreign market is the key factor of a successful international NPD. The existence of world markets offers great profit potential for firm that want to market their products there. But the firm will have to define if the market is valuable enough to make the next step. The business analysis of the new product will have to estimate its future sales, cost, and profits. Launching a new product in a foreign market is a real challenge for a firm. [...]

[...] The composition of car tyres varies according to the extremes of climate. Discretionary adaptation Discretionary product adaptation is what the firm decides on its own. In fact the firm decides whether to modify or not its products and how modify them. This kind of modification is more problematic because no guidelines specify how the product should be modified. It is the opposite of mandatory adaptation where technical or government requirements are unambiguous. Thus what are the factors which might encourage firms to adapt their products? [...]

[...] However companies conduct R&D abroad to the extent that foreign markets require different product. Local R&D helps to find the right product. Multinational companies often have a foreign R&D facility in conjunction with one or more market of their foreign factories, but rarely in every country where they are present. The cost of having facilities in each country is too high. Nevertheless, all firms need to internationalise their product development process if they want to develop appropriate products for world market. [...]