Lean start-up in market penetration using DMADV methodology: An empirical study

Abstract

Prior research has reported that new product development can integrate product design, marketing inputs, and supplier performance. Yet, our knowledge of the startup stabilization process is minimal. Hence, the present study empirically investigates how an Indian tech giant attempts a new product development in the market penetration category. In this context, the current investigation proposes an implementation strategy using lean-six sigma philosophy, i.e., Define-Measure-Analyze-Design-Validate (DMADV) methodology. The new product considered for the current study belongs to the existing market - existing product, i.e., mobile surveillance devices in the Indian market. The lean tools used in the present investigation are Project charter, brainstorming, voice of customer, market analysis, benchmarking, quality function deployment, and system diagram. Our study reveals critical implementation insights about the market penetration model for lean startups and underscores its significance. Furthermore, a cost gap of 94 US$ of the product manufacturing cost with the lowest available model price is reported. The findings inferred from the present study help entrepreneurs to stabilize their startups effectively using lean philosophy. The potential readership for this study is entrepreneurs, management graduates, and industrial management teams.