Investigating product development strategy in beverage industry using factor analysis

Abstract

Selecting a product development strategy that is associated with the company's current service or product innovation, based on customers' needs and changing environment, plays an important role in increasing demand, increasing market share, increasing sales and profits. Therefore, it is important to extract effective variables associated with product development to improve performance measurement of firms. This paper investigates important factors influencing product development strategies using factor analysis. The proposed model of this paper investigates 36 factors and, using factor analysis, we extract six most influential factors including information sharing, intelligence information, exposure strategy, differentiation, research and development strategy and market survey.The first strategy, partnership, includes five sub-factor including product development partnership, partnership with foreign firms, customers' perception from competitors' products, Customer involvement in product development, inter-agency coordination, customer-oriented approach to innovation and transmission of product development change where inter-agency coordination has been considered the most important factor. Internal strengths are the most influential factors impacting the second strategy, intelligence information. The third factor, introducing strategy, introducing strategy, includes four sub criteria and consumer buying behavior is the most influencing factor. Differentiation is the next important factor with five components where knowledge and expertise in product innovation is the most important one. Research and development strategy with four sub-criteria where reducing product development cycle plays the most influential factor and finally, market survey strategy is the last important factor with three factors and finding new market plays the most important role.

Effect of teamwork culture on NPD team’s capability in Indian engineering manufacturing sector

“…Though continuous improvement is a difficult task to be performed (Hailu et al, 2018) but NPD is an effective way for revitalizing the success of the firm by providing new products with the features as per the customers' demand (Bhuiyan, 2011). From NPD strategy to commercialization there are numerous factors influencing the ultimate growth of the firm by performing innovative activities (Chen et al, 2014;Azad et al, 2013;De Sousa Mendes & Ganga, 2013). Difference in social, economic and political atmosphere of various countries and varieties of industries make the difference in factors controlling the NPD performance.…”