5 Reasons Companies Fail in Launching New Products
In today’s fast-paced world of the internet and social media products, companies, and small businesses come and go quicker than ever before. While products may, come and go quicker than ever before the reasons for their failure remain no different from in any era past. Products and company failures can be traced back to a failing within one of the following categories.
Failure to meet or understand a consumer’s needs.
One example of this failing can be seen here with ATT 1970’s launce of their picture phone. What ATT did not anticipate was that most consumers would find the product too bulky, gaudy, and all around inconvenient for practical use. Fast-forward forty years and video calling (face timing) is part of all our everyday lives. This leads us to another reason why new products fail.
Bad Timing. As mentioned above ATT videophone failed due to failing to understand, consumer current needs. However, this same idea launched decades later packaged with the latest technological advances allowed for this idea to be a grand success.
Marketing or pushing a poorly conceived idea into the marketplace. Often organizational management conceives of an idea with good intentions without noticing the potential landmines as Under Armor stepped on in this poorly conceived idea.
Not listening to the voice of the consumer. Although it is the mantra of almost every business “The consumer is always right” all too often a CEO or manager will get it in their heads that they know what the consumer wants even if the consumer has not voiced it.
Poor product quality. Often companies will cut corners to either save money or bring a product to market before its ready. Not only does this normally result in a poor product and dissatisfied customers but can often prove dangerous i.e. vehicle recalls etc.