Question

"In a market with 20% annual growth and 12% price-drop per annum, technological products which arrive on the market six months late but on budget generate 33% less profit over five years, whereas getting the product to market on time but 50% over budget only reduces profits by 4% (Ali et al., 1995)."

Question 2.1: What is the implication of this argumentation?

Question 2.2: Explain the theory that the statement above implied.

Answer 1

2.1 Implication

Commercialisation of product is a deal breaker everytime.Because of a new product or features it quickly diminishes.Majority of innovations are dependent or enabled.Introducing new products in the market is bit difficult to carry its cometitive advantage and sustainabulity is critical.For many technological driven firms their strategic objective will be reduction of product development cycle.

2.2 Theory

The statement above implied will comes under Time to market and its also known as speed to market.

it defines that the time taken to bring a product to use.or the generation of a product and launch in the market.It determines the success of innovation for several reasons.All competitors are investing in innovations.