An analyze on new product failure

The purpose of new product development models is to identify and give guidance to the certain activities in the process of creating a new product. Historically the models followed a horizontal structure where different parts of the company were in charge of different task in the process. Those could be categorized as department stage models and are widely criticized for being to general and not being applicable in specific situations and for being too time consuming and not generating any market feedback. However, over the years these models have gone trough some great progress and today there are a variety of models taking on a more activity- or decision- based or convergent kind of view. We are briefly going to present “The Booz, Allen and Hamilton model of new product development” which originates with a company objective and finally leads us to product success. It contains a number of activity based steps followed by review points where a decision to continue or to drop the product takes place. It is therefore a model that involves a large amount of iteration and feedback.

Returning to our questions, it seems for as to create a good framework through which we can point better factors that lead to success or failure.

Now, first of all, let’s have a look at the “Big Picture” of global markets! One can easily observe that more and more products are introduced by companies in search of building competitive edge and differentiating from their competitors. Because of this, many new products survive only for a short period, and the average product life cycle is shortening as successful new products displace the old. However, in numerous cases the success searched by companies turns up into failure and numbers speak for themselves: …..

From the very beginning we like to state the existing pressure put on executives to develop new successful products. The effervescence of the existing environment pushes them on taking quick