An evaluation model of new product launch strategy
An evaluation model of new product launch strategy
ChuiY.- C., Chen B., ShyuJ. Z. and Tzeng G.-H. Technovation, November 2006, Vol. 26 No. 11, Start page: 1244, No. of pages: 9
Purpose – to synthesize an evaluation model for determining new product(NP) launch strategy. Design/methodology/approach – overviews the NP development literature, noting the need for firms to have an effective strategy for bringing NPs to market. Comments, however, that NP launch strategies are varied, with little study to evaluate associated decisions. Offers a hierarchical methodology for evaluating a product launch strategy using PATTERN(planning assistance through technical evaluation of relevance number) (NASA PATTERN, Procedure Manual, 1996). Steps through its scenario writing(identifying factors affecting NP performance and success), building a relevance tree (identifying elements of strategic concern, marking concern, and organization concern) and evaluation (fuzzy multiple criterion analytical hierarchy process (AHP) evaluation to score product strategies). Applies it to the Taiwanese integrated circuit (IC) industry to determine which of the following NP strategies operate: “first-to-market”; “fast follower” (learns quickly from first entrants), and “delayed entrant”. Analyses 50 mailed questionnaire returns (∼61 percent response) from NP managers. Uses TOSIS to transform fuzzy integrated decisions from AHP weighting of various criteria and performance matrix estimation using fuzzy judgement values, to “best nonfuzzy performance” (BNP) values for strategy ranking. Findings – concludes managers consider the “fast follower”strategy as the best for their IC industry. Research limitations/implications– believes the research lays groundwork for further studies. Practical implications – states managers can apply the methodology to other areas. Originality/value – presents a first attempt to model the formulation process of a new product launch strategy and evaluate alternatives via fuzzy multi-criteria decision making.
Keywords: New products, Product launch, Strategic evaluation, Strategy
