Importance of Product Development for a Business Organization

This essay explores the critical role of product development within a business organization. It defines product development as the process of creating products with differentiated features that provide value to customers. The essay emphasizes that product development is vital for achieving high profits, maintaining market share, and gaining a competitive edge. The main body covers the stages of product development, from concept to market release, including identifying market needs, conceptualizing the product, creating a product roadmap, developing a minimum viable product, releasing the MVP to users, and iterating based on consumer feedback. The essay highlights how product development leads to increased customer value, improved profitability, and sustained market presence through innovation and the satisfaction of customer needs. The conclusion reiterates the significance of product development for enhancing brand reputation, ensuring long-term market sustainability, and fostering growth. The essay references several academic sources to support its claims.

Why is Product Development
important to a business
organisation?
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CONTENTS
TOPIC: “Why is Product Development important to a business organisation?”............................3
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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TOPIC: “Why is Product Development important to a business organisation?”
INTRODUCTION
Product development is referred as the process of developing products with differentiated
features that offers additional value and benefits to customers. For a business organisation,
product development is very important aspect to achieve high profits (Tyagi, Choudhary, Cai,
and Yang, 2015). This is an essay report which covers information of product development and
its significance to business organisation.
MAIN BODY
Product development is referred as process which consists of stages included in in bringing a
particular product from concept, by market release. It incorporates the entire journey of
developing a product including identification of market need, conceptualizing the product,
developing product roadmap, creating minimum viable product, releasing minimum viable
product to users and iterating based on the feedback of consumers. the main objective of
developing a product is to cultivate, maintain as well as maximize the market share of company
by satisfying the needs and wants of customers. Product development help an organisation in
improving its profitability and attain growth and success in the market. It provides a competitive
edge to company in the market over its rivals (Cooper, 2019).
The increased value offered to customers will help in leading the company towards success.
Product development helps in satisfying the needs and demands of customers which ultimately
improve the profitability of company. Modifications in existing product to develop better
performing version with additional features will help organisation to sustain in market through
generating additional revenue. Development of new and effective products help company in
creating value for the customers by satisfying their needs. The products that a company develop
must be innovative as this will help the firm in competing in the market and attain good position.
Apart from this, there are various instances where the products of the company assisted in
bringing improvement in the society. Development of a product is the lifeline of any
organisation. The products and services are developed by organisations for the improvement and
growth of their business. It also helps in improving the performance of company in the market
and also assist in make the company distinctive from its rivals (Holahan, Sullivan, and Markham,
2014).
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The product can be a physical item like smartphone, automobile etc. A successful product
development will help the company in bringing new values for customers, ensure improved
society and constant existence of company in the market. The most important reason for
development of a product is to render new value to buyers. Without this, the consumers have no
reason to trade their money. If any product or service developed by a company provides
overwhelming value to customers, then they will flock to it. The company can grow only when it
provides increasing value to customers on continuous basis (Luchs, Swan, and Griffin, 2015).
Develop a new product or adding some features to the existing product will support in improving
performance of the organisation. It is essential for organic growth of company and provides
company with new opportunities to grow and develop in the market. It is also important for
diversifying the risks and improve the brand reputation of company. For developing a product,
company use product development process which consists of several stages that are followed by
company to successfully developed a new product and commercialize it into the market to attain
high profits and revenues and ensure its long term sustainability in the market.
CONCLUSION
As per the above essay, it can be concluded that it is very significant for the organisation to
develop a new product or bring constant improvements in existing products. The reason is that it
assists company in enhancing its brand reputation and maintain sustainability and growth in
market for longer term.
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REFERENCES
Books & Journals
Cooper, R.G., 2019. The drivers of success in new-product development. Industrial Marketing
Management, 76, pp.36-47.
Holahan, P.J., Sullivan, Z.Z. and Markham, S.K., 2014. Product development as core
competence: How formal product development practices differ for radical, more
innovative, and incremental product innovations. Journal of Product Innovation
Management, 31(2), pp.329-345.
Luchs, M.G., Swan, S. and Griffin, A., 2015. Design thinking: New product development
essentials from the PDMA. John Wiley & Sons.
Tyagi, S., Choudhary, A., Cai, X. and Yang, K., 2015. Value stream mapping to reduce the lead-
time of a product development process. International journal of production
economics, 160, pp.202-212.
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