New Product Development Strategies

Running head: NEW PRODUCT DEVELOPMENT STRATEGIES
NEW PRODUCT DEVELOPMENT STRATEGIES
Name of the Student
Name of the University
Author Note

1NEW PRODUCT DEVELOPMENT STRATEGIES
Table of Contents
1. Introduction................................................................................................................2
2. New Product Development........................................................................................2
3. Factors that affect new product development framework..........................................3
4. Product related factors................................................................................................3
4.1 Pricing of the products.........................................................................................3
4.1.1 Pricing of the products offered by the company...........................................4
4.2 Technological advancement of the products........................................................5
4.2.1 Technological advancement of new products offered by Huawei................6
5. Market related factors................................................................................................7
5.1 Marketing activities..............................................................................................7
5.1.1 Marketing activities implemented by Huawei..............................................8
5.2 Levels of competitiveness in the market..............................................................9
5.2.1 Market competitiveness of Huawei.............................................................10
6. Critical success factors and issues related to the company......................................11
6.1 Strengths.............................................................................................................11
6.2 Weaknesses........................................................................................................11
7. Recommendations....................................................................................................12
8. Conclusion................................................................................................................12
9. References................................................................................................................13

2NEW PRODUCT DEVELOPMENT STRATEGIES
1. Introduction
Huawei Technologies Co. Ltd. is a Chinese multinational organization that operates in
the consumer electronic or telecommunication based industry. The headquarter of the
organization is located in Shenzhen, Guangdong, China. The organization was established in
the year 1987 by Ren Zhengfei, who was a People’s Liberation Army Officer. The operations
of Huawei were mainly focussed on the development of phone switches. The organization
has further expanded the operations in formation of telecommunication based networks that
provide consulting and operational services as well as equipment to the enterprises that
operate in and outside of China.
2. New Product Development
As discussed by Açıkgöz, Günsel, Kuzey and Seçgin (2016), the process of new
product development is mainly built on the ways by which a service or product based concept
is introduced in the market. The process mainly sets out the series of steps that the new
products have to go through. The steps mainly include, the generation of the idea and the
concept that further ends with introduction of the product to a suitable market. The eight
stages that are a part of the new product development method include, idea generation, idea
evaluation, strategic analysis, testing and product development, market testing,
commercialisation and product launch (Adler, Pittz & Meredith, 2016). The process of the
development of new products is thereby built on the methods by which the diverse steps are
performed by the management and the employees of the organization. The most important
aspect of new product development is the design of the products. The products that are
developed as a part of the new product development process can be tangible and intangible as
well. The needs and demands are considered and analysed in a detailed manner for the
purpose of effective product development (Bai, Feng, Yue & Feng, 2017).

3NEW PRODUCT DEVELOPMENT STRATEGIES
3. Factors that affect new product development framework
4. Product related factors
4.1 Pricing of the products
The pricing strategy is considered to be an important part of the entire process based
on new product development. The major objective related to the development of pricing
strategy is based on the ways by which the cost based on manufacture of the products can be
covered with the help of prices that have been set. The percentage based on desired
profitability levels are added to cost based on product development in order to determine the
sale based price of the products. The pricing strategies that are applied by the firms are
mainly built on the market value that can be developed for the products (Bashir, Papamichail
& Malik, 2017). The perceived value of new products being developed by the company by
the customers is a major factor that is considered for the purpose of effective product
development. Pricing can be considered to be a significant parameter that can be applied by
the firms in order to develop and launch the new products. Ineffective pricing strategy
implementation can further cause huge levels of losses in the process of product development
Market related factors
 Marketing
activities.
 Market
attractiveness.
Product related factors
 Technological
advancement.
 Pricing
Technological
factors
Successful product
development
Commercial viability