Problem
In the domain of medical devices it has been reported that some large firms are increasingly resorting to purchasing new technology based technology start ups to add to their product portfolio rather than developing new products themselves. This strategy appears to contradict the concept of 'First mover Advanatge'. Please explain the concept and discuss this statement. identify the additional perceived risks of this reported business strategy.
The owner of a small manufacturing enterprise has requested you to assist in the firms New Product Development (NPD) effort. The firm's current product portfolio has not changed in many years and the same products have a steady demand level in the market place. The owner is very concerned that the risk the newly developed articulated an interest in mitigating this risk by finding the most appropriate customers to target and also deploying methods that ensure the requirements articulated by these customers are included as features within the new products that are developed.
The owner has requested you to focus on the following area of concern:
A. Suggest an appropriate Suite of Performance indicators of product success.
B. Customer Selection.
C. Suggest an appropriate 'Buy a Feature' for linking of customer Requirements with product features and explain in detail the full benefits and limitations of this approach.
D. The owner of the firm requests you to prepare a report where you recommend an appropriate response to these areas of concern. Provide a supporting rationale as to why these recommendations will enhance the capability of the firm to develop new products that are successful in the market place.