Document Type : Research Paper

Authors

1 Department of technology management, Roudehen Branch, Islamic Azad University, Roudehen, Iran

2 Department of technology management, science and research Branch, Islamic Azad University, Tehran, Iran

Abstract

Goal: Increasing orders and selling products are some of the most important key factors in designing the strategy of all industries. For improving this factor, researchers suggested too many ways; new product development is one of them. If a firm succeeds in designing and introducing a new product, it would have greater share of the market; the best example is IT market in which new product development and innovation are considered. All around the world, some rules are in common, but some of them change according to the market, social, and political environment. In designing an industry and having a successful new product, one should know the market environment of target society, priority of the market, and the best strategy choice based on data analyzed.
Methodology: In this paper, firstly, we identify the key factors in successful NPD at Esfahan Steel Co.; then, by using questionnaires, the experts’ views are gathered. The collected data are analyzed by TOPSIS method, and finally, the main parameters that affected the successful NPD are ranked.
Results: Two different factors including product differentiation and competitor orientation are in the center attention of Esfahan Steel Co.; but, obeying the government resolution is the factor which destroys efficiency of selling marketing and losing market. To be successful in developing the industries, the government should let them find their ways, and make decision based on their skills and experiences. For improving their selling share in the market, it is suggested that they should focus on product differentiation.
Limitation: In this study, the access to the important data related to the new product of the company is so hard, because most of the research and development centers of the company did not cooperate with us.
Practical implications: Market strategy is one of the most important keys to success in all firms. In this respect, Esfahan Steel Co. should choose the best and improve the current one for succeeding in its industries.
Originality / Value: According to results, the literature of study confirmed but, revealed the difference of the Iran steel market to another markets.
Methodology: In this paper, firstly identifying key factors in successful NPD at Esfahan steel co, then asking from expertise by using questionnaires, analyzes data collected by TOPSIS methods and at least ranked the main parameter that identified affecting on successful NPD.
Results: shows that Esfahan steel co attention on two different factors is in center of focus; product differentiation and competitor orientation, but another factor that destroyed their efficiency on selling marketing is obeying government resolution; this behavior caused decreasing efficiency on selling market and losing market. If the government wants to be successful in developing their industries, they should let industries find their way and make a decision from their skills and experiences. Suggested For improving their selling share of the market, they focused on product differentiation.
Limitation: In this study, access to the important data related to the new product of the company is so hard, because most of the research and development center of the company did not let us access to the data.
Practical implications: Market strategy is one of the important key success in all firm, Esfahan Steel co should choose best market strategy for succeed in their industries, this study aim to the firm that choose better market strategy and improve current strategy.
Originality / Value: according to results that show in this study, the literature of study confirmed but revealed the difference of the Iran steel market to another market.

Keywords

[1]         Svendsen, Mons Freng; A. Haugland, Sven; Grønhaug, Kjell; Hammervoll, Trond; “Marketing strategy and customer involvement in product development”, European Journal of Marketing, Vol. 45, Issue 4, pp. 513-530, 2011.
[2]         Kamel, A.; Fantazy, Mohamed Salem; “The value of strategy and flexibility in new product development: The impact on performance”, Journal of Enterprise Information Management, Vol. 29, Issue 4, pp. 525-548, 2016.
[3]         Jeen‐Su, Lim; Sharkey, Thomas W.; Heinrichs, John H.; “Strategic impact of new product development on export involvement”, European Journal of Marketing, Vol. 40, Issue 1/2, pp. 44-60, 2006.
[4]         Lindman, Martti Tapio; “Open or closed strategy in developing new products? A case study of industrial NPD in SMEs”, European Journal of Innovation Management, Vol. 5, Issue 4, pp. 224-236, 2002.
[5]         Pitta, Dennis; “From market entry to new product development in China: Environmental Systems Controls”, Journal of Product & Brand Management, Vol. 14, Issue 2, pp. 119-122, 2005.
[6]         Pasche, Maximilian; Persson, Magnus; Löfsten, Hans; “Effects of platforms on new product development projects”, International Journal of Operations & Production Management, Vol. 31, Issue 11, pp. 1144-1163, 2011.
[7]         Kim, Yeon-Hak; Park, Sun-Woong; Sawng, Yeong-Wha; “Improving new product development (NPD) process by analyzing failure cases”, Asia Pacific Journal of Innovation and Entrepreneurship, Vol. 10, Issue 1, pp. 134-150, 2016.
[8]         Kim, Minseo; Kim, Ji-eung; Sawng, Yeong-wha; Lim, Kwang-sun; “Impacts of innovation type SME’s R&D capability on patent and new product development”, Asia Pacific Journal of Innovation and Entrepreneurship, Vol. 12, Issue 1, pp. 45-61, 2018.
[9]         Holtzman, Yair; “A strategy of innovation through the development of a portfolio of innovation capabilities”, Journal of Management Development, Vol. 33, Issue 1, pp. 24-31, 2014.
[10]     Lawson, Benn; Potter, Antony; “Determinants of knowledge transfer in inter‐firm new product development projects”, International Journal of Operations & Production Management, Vol. 32, Issue 10, pp. 1228-1247, 2012.
[11]     Hong, Tang Sai; Ghobakhloo, Morteza; “IT investments and product development effectiveness: Iranian SBs”, Industrial Management & Data Systems, Vol. 113, Issue 2, pp. 265-293, 2013.
[12]     Hsu, Yen; “A value cocreation strategy model for improving product development performance”, Journal of Business & Industrial Marketing, Vol. 31, Issue 5, pp. 695-715, 2016.
[13]     Nicholas, John; Ledwith, Ann; Perks, Helen; “New product development best practice in SME and large organisations: theory vs practice”, European Journal of Innovation Management, Vol. 14, Issue 2, pp. 227-251, 2011.
[14]     Woodcock, D.J.; Mosey, S.P.; Wood, T.B.W.; “New product development in British SMEs”, European Journal of Innovation Management, Vol. 3, Issue 4, pp. 212-222, 2000.
[15]     Hilmola, Olli-Pekka; Lorentz, Harri; Hilletofth, Per; Malmsten, Jarmo; “Manufacturing strategy in SMEs and its performance implications”, Industrial Management & Data Systems, Vol. 115, Issue 6, pp. 1004-1021, 2015.
[16]     Hanna, Nessim; J. Ayers, Nessim; E. Ridnour, Rick; L. Gordon, Geoffrey; “New product development practices in consumer versus business products organizations”, Journal of Product & Brand Management, Vol. 4, Issue 1, pp. 33-55, 1995.
[17]     Wang, Qing; Montaguti, Elisa; “The R&D‐marketing interface and new product entry strategy”, Marketing Intelligence & Planning, Vol. 20, Issue 2, pp. 82-85, 2002.
[18]     Goffin, Keith; New, Colin; “Customer support and new product development ‐ An exploratory study”, International Journal of Operations & Production Management, Vol. 21, Issue 3, pp. 275-301, 2001.
[19]     Jacobs, Laurence; Herbig, Paul; “Japanese product development strategies”, Journal of Business & Industrial Marketing, Vol. 13, Issue 2, pp. 132-154, 1998.
[20]     Park, Young H.; “A study of risk management and performance measures on new product development”, Asian Journal on Quality, Vol. 11, Issue 1, pp.39-48, 2010.
[21]     Sun, Chia chi; Lin, Grace T.R; “Using fuzzy TOPSIS method for evaluating the competitive advantages of shopping websites”, journal of Expert Systems with Applications, pp. 11764-11771, 2009.  
[22]     Nazemi, Siamak; Khajavi, Ramin; Rabie Far, Hamidreza; Yazdanshenas, Mohammad Esmail; Raad, Manouchehr; “Effect of hydrophobic finishing on drag force of swimwear”, International Journal of Clothing Science and Technology, 2017.
[23]     Nazemi, Siamak; Khajavi, Ramin; Rabie Far, Hamidreza; Yazdanshenas, Mohammad Esmail; Raad, Manouchehr; “Modeling and simulation of drag force for coated PET fabric with silica nano particles”, International Journal of Clothing Science and Technology, 2018.