How to Commercialize New Products
All business decisions for commercializing new products need to be based on factual data obtained through credible sources. This means that before actions related to expansion to new markets, the removal of a particular product line, or the creation of a new product, a manager must base such decisions on data obtained from customer data market analysis like SWOT or Porter 5 Forces, and finally financial data. Basing the commercialization of a product without sufficient factual data can lead to disastrous consequences for a company, as seen when Gerber marketed their brand of baby food in Africa only to find out later on that the sheer lack of sales for their products was due to the fact that many African’s could not read and based the contents of the product on what picture was on the label (in this instance the product as construed as being processed babies).
All business decisions need to be practical in that they should conform to the expected goals of the company or the department. This means that decisions should be framed with the goal of gradual improvements for the sake of improving the company rather than grandiose idealistic dreams that are risky and more often than not result in the dissolution of a company due to risky and impractical decisions. This was seen in the case of the ill-advised venture of Microsoft into the music player market with their “Zoon.” The product was considered a failure and, from a practical standpoint, was doomed to fail due to the inexperience of the company in marketing such a device and the fact that it had to compete with already well-established companies within the same market (i.e., Apple, Sony, etc.). It is only when such factors are implemented within a business that the processes utilized in product development can be improved, resulting in greater company profits.