Management of Innovation 301
Digital Report Assessment
7 (Refer Exhibit 7). Firstly, market penetration means “existing products are sold to new
customers or customer segments” (Simon 2010, 19). Secondly, market development is a
“strategy to increase sales by selling more existing products to the existing customer base”.
Thirdly, product development means “introducing new product into current market”. Lastly,
diversification means “introducing new product in the new market in which they currently
does not operate” (Trott 2012, 423). GroupMap should use product development strategy to
expand the business by increasing and improving the designs of the templates and add special
features to the templates.
4.2.2 New Product Development Models
NPD model is a tool that to maintain the sustainability of the business by exploring
new methods for the product development. There are firms which failed the method and then
they will use new method to explore new markets and developments of product. There are
eight categories for the new product development models (Click here to go to the slides).
According to the theory, GroupMap should use individual and network models to expand the
business as GroupMap was created by an individual’s idea and both of the founders have
expose to different knowledge.
4.2.3. Business Opportunities of New Product
After the process of new product development, it is the generation of business
opportunity. Business opportunity is defined as “a feasible, profit seeking potential venture
than provides an innovative new product or service to the market, improves on an existing
product or service, or imitates a profitable product/service in a less-than-saturated market”
(Smith, Matthews and Schenkel 2009, 40).
After identify the sources of business
opportunity, it is the screening of the business opportunities. The main purpose of the
screening ideas is to select the successful sources and drop the one that will not (Trott 2012,
565). GroupMap has done good job on screening the opportunities as it has done most of the
opportunity screening. Before GroupMap was officially launched, they have done a concept
testing on the students in Curtin University.
After everything is stable, GroupMap is
officially launched.
CHONG JING TZE (16320341/7E2A9842)
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