Timing Of Product Introduction Research Articles

Markov Perfect Equilibria in Multi-Mode Differential Games with Endogenous Timing of Mode Transitions

We study Markov perfect equilibria (MPE) of two-player multi-mode differential games with controlled state dynamics, where one player controls the transition between modes. Different types of MPE are characterized distinguishing between delay equilibria, inducing for some initial conditions mode switches after a positive finite delay, and now or never equilibria, under which, depending on the initial condition, a mode switch occurs immediately or never. These results are applied to analyze the MPE of a game capturing the dynamic interaction between two incumbent firms among which one has to decide when to extend its product range by introducing a new product. The market appeal of the new product can be influenced over time by both firms through costly investments. Under a wide range of market introduction costs a now or never equilibrium coexists with a continuum of delay equilibria, each of them inducing a different time of product introduction.

Dynamic System Analysis of R&D Based on Localization Capabilities in the Commercial Auto Industry

According to published reports on the level of internalization of commercial vehicles, it shows that most carmakers pursue a minimal domestic manufacturing policy and less have a policy of increasing domestic manufacturing on their agenda. The most important research gaps are need to study R&D activities in the form of a dynamic system in the automotive industry based on the three variables of supply network capabilities, product innovation and process. The purpose of this study is to provide a dynamic model to investigate the behavior of a commercial vehicle R&D system. The present study is applied in terms of purpose. The basis of the system analysis is previous research as well as information obtained from interviews with automotive industry experts. For this purpose, first the variables affecting the cycle of R&D activities are studied and modeling is presented using the dynamics approach. Also, various policies on the performance of the development research cycle based on the time of knowledge acquisition and product introduction have been simulated and analyzed. The results of system performance simulation show that the weak share of research and development budget along with low and limited market share and lack of proper investment makes the research and development capability at an unfavorable level during the next 10 years. Therefore, it is suggested that the necessary measures in this regard be taken in the fields of product sales marketing along with appropriate investment in research and development.

The Impact of Additive Manufacturing on the Flexibility of a Manufacturing Supply Chain

There is an increasing need for supply chains that can rapidly respond to fluctuating demands and can provide customised products. This supply chain design requires the development of flexibility as a critical capability. To this end, firms are considering Additive Manufacturing (AM) as one strategic option that could enable such a capability. This paper develops a conceptual model that maps AM characteristics relevant to flexibility against key market disruption scenarios. Following the development of this model, a case study is undertaken to indicate the impact of adopting AM on supply chain flexibility from four major flexibility-related aspects: volume, mix, delivery, and new product introduction. An inter-process comparison is implemented in this case study using data collected from a manufacturing company that produces pipe fittings using Injection Moulding (IM). The supply chain employing IM in this case study shows greater volume and delivery flexibility levels (i.e., 65.68% and 92.8% for IM compared to 58.70% and 75.35% for AM, respectively) while the AM supply chain shows greater mix and new product introduction flexibility, indicated by the lower changeover time and cost of new product introduction to the system (i.e., 0.33 h and €0 for AM compared to 4.91 h and €30,000 for IM, respectively). This work will allow decision-makers to take timely decisions by providing useful information on the effect of AM adoption on supply chain flexibility in different sudden disruption scenarios such as demand uncertainty, demand variability, lead-time compression and product variety.

Markov Perfect Equilibria in Multi-mode Differential Games with Endogenous Timing of Mode Transitions

In this paper we study Markov-perfect equilibria (MPE) of two-player multi-mode differential games with controlled state dynamics, where one player controls the transition between modes. Different types of MPE are characterized distinguishing between delay equilibria, inducing for some initial conditions mode switches after a positive finite delay, and now or never equilibria, under which, depending on the initial condition, a mode switch occurs immediately or never. These results are applied to analyze the MPE of a game capturing the dynamic interaction between two incumbent firms among which one has to decide when to extend its product range by introducing a new product. The market appeal of the new product can be (positively or negatively) influenced over time by the competing firms through costly investments. It is shown that under a wide range of market introduction costs a now or never equilibrium co-exists with a continuum of delay equilibria, with each of them inducing a different time of product introduction.

Do First-Movers in Marketing Sustainable Products Enjoy Sustainable Advantages? A Seven-Country Comparative Study

The literature suggests that first-movers enjoy sustainable competitive advantages but suffer some disadvantages. The timing of new product introduction is a major decision for executives who are concerned about sustainability issues. These executives must simultaneously strive for environmental protection, social welfare, the timing of product introduction, and the economic viability of decisions. However, few academic studies have examined how executives balance sustainable first-mover advantages and sustainable development goals in order to achieve sustainable organizational growth and performance. This study develops nine research hypotheses to examine what sustainable advantages first-movers gain by being first to market sustainable products in five industries that are important for advancing sustainable development goals. Using data collected from 1437 executives who are concerned about sustainability issues in seven countries, this study uses Duncan multiple-range tests to examine cross-national similarities and differences between Asian and Western countries. The study results reveal some interesting cross-national similarities and differences. The cross-national differences suggest some competing and signaling strategies for sustainable enterprise development. This study contributes to the existing cross-national research on first-mover advantages, provides a richer understanding of how executives who are concerned about sustainability issues perceive sustainability first-mover advantages and disadvantages, and further expands the theory of sustainable innovation and entrepreneurship.

Competitive strategies of differentiation and cost minimization

The strategies of differentiation and cost minimization are oriented on reception of competitive advances in the broad range of industries/branches, that allows companies to achieve effective exceed in the industry-average indicators. Using the both strategies can bring the synergetic effect in competition of the subjects and objects. These strategies can reinforce each other and the competitive advances of the company. Strategies of cost minimization and differentiation can coexist and compete. Cost leadership strategy focuses on getting advantages by reducing cost below analogies of all competitors. It is unsufficient the single of cost minimization in the international competing, it is necessary the complex and creative decision of the compound problems, associated with differentiation of products and services.Product differentiation is a business strategy, whereby firms attempt to gain a competitive advantage by increasing the perceived value of their products/services relative to perceived value the other products/services firms; with recording dissatisfied inquiring the customers. Especially distinctive characteristics, properties, attributes of products or services can be one or more-the main thing that they were really important, more useful and valuable for buyers. The differentiation can create on the basis the timing of product introduction, product customization, the best joining the product and services or simultaneously combination of these advantages. Product differentiation is ultimately an expression of the creativity of individuals and groups within the firm. It is limited not only by opportunities, than exist, or than can be created, in particular industry, but by the willingness and ability of firms to creatively explore ways to take advantage of those opportunities.The willingness of consumers to pay more suggests, that important perceptual bases of product differentiation exist. Successful implementation of these strategies can increase consumer sensations/perceptions of the greater value of products/ services and contribute to the expansion of their exports and strengthen the competitiveness of the company in the global economy. The ideal strategy-building process is to achieve a high level of commitment of employees and consumers around a high-quality strategy and the best ways to implement it.

Barco Implements Platform-Based Product Development in Its Healthcare Division

In this article, we present how Barco, a global technology company, used an operations research optimization model, which was supported by an efficient solution method, to implement platforms—common structures from which sets of products could be made—for the design and production of its high-tech medical displays. Our optimization model captures all cost aspects related to the use of platforms; thus, it is an objective tool that considers the input from marketing, sales, research and development (R&D), operations, and the supply chain. This comprehensive view allowed Barco to avoid the excessive costs that may result from the implementation of an incorrect platform. Our model supported Barco in determining the elements that should comprise each platform, the number of platforms to develop, and the products to derive from each platform. The results of the project led to reductions in safety stock and increased flexibility due to the use of platforms: R&D can now introduce twice as many products using the same resources, thus increasing Barco’s earnings by more than five million euros annually and reducing product introduction time by nearly 50 percent.

Agile manufacturing: a systematic review of literature and implications for future research

PurposeAgile manufacturing (AM) has evolved as a revolutionary way of manufacturing the products while managing the uncertainties, product introduction time, responsiveness, innovation, superior quality, etc. along the supply chain to satisfy the ever increasing customer demand and to maximize the profit. The purpose of this paper is to critically analyze the literature related to various dimensions of AM and to report the findings.Design/methodology/approachThis paper presents the reviews of 300 scholarly articles from 1993 to 2016 by various researchers and practitioners on AM collected from different sources, i.e. Google Scholar and ResearchGate. The information related to AM is also captured during industrial visits to different Indian manufacturing plants.FindingsAM definitions are reported along divergent scopes and objectives in the literature. The researchers have given importance on performance measurement and process analysis through empirical and descriptive analysis whereas its implementation issues are neglected. It is also observed that the effort made on AM is significant for manufacturing industries which is overlooked in service industries.Practical implicationsThis literature review has identified many research gaps in AM which were not paid attention before. Researchers can address these research gaps for strengthening the AM implementation.Originality/valueIn total, 300 research papers are reviewed and analyzed to capture the various aspects of AM and its related issues but not restricted to research methodologies, author profiles, types of industries, tools/techniques/methodology used, etc.

Predicting long-term product ratings based on few early ratings and user base analysis

Product reviews and ratings are major quality indicators in online shopping systems. In making the decision about carrying a product as part of their inventory, an online seller often pays attention to the product’s rating. However, when the observed average is based on a small number of individual user-submitted ratings, the decision-maker may not feel as confident about the product, even when the average is high. The long-term average rating predictions can help online retailers to identify products to promote on their websites as “top picks”. The paper proposes a Bayesian Network model to predict the long-term average product ratings based on a (limited) number of early submitted ratings. Performance of the proposed model is compared with the performance of five other prediction methods/models; a Linear Regression model, two variations of a Running Average predictor, an Ordered Logistic Regression model and a Confirmatory Factor Analysis model. Each model’s performance is evaluated using the “MovieLens” dataset (GroupLensResearch, 2012). The training is done on 56,590 data points, the ratings submitted for 1155 movies, and the prediction results are reported for 495 movies. It is demonstrated that the proposed Bayesian Network and the Linear Regression models are particularly effective in making accurate predictions around the time of product introduction when the information about the prospective, future ratings is especially valuable. The Bayesian Network model performs better in the very early stage of feedback collection, and in the later stages, as more feedback is received, the Linear Regression model emerges as the best predictor. The strengths and weaknesses of all the assessed prediction methods are discussed.

The Influence of Purchasing Strategies on Manufacturing Performance: An Empirical Study in Malaysia

The aim of this paper is to analyze the importance of purchasing strategies contribution on manufacturing performance, realizing purchasing function as a key component in organizations. A total of 100 questionnaires were used for statistical analysis in order to study the significant level of the constructed model among manufacturing firms located in major industrial states in Malaysia. The results obtained reveal that purchasing strategies create significant positive impact on manufacturing performance which comprises the competitive priorities of the firms in terms of quality, cost, cycle time, new product introduction time line, delivery speed and dependability and finally, customization responsiveness performance. Manufacturing firms should focus on purchasing strategies, effective negotiation, supplier collaborative relationship and interaction, effective cost management and supply base management as navigators for their excellence performance in the current volatile market conditions. The paper shows that purchasing strategies are vital for manufacturing firms in order to remain competitive and relevant in the challenging and competitive business environment.

The timing of green product introduction in relation to technological evolution

As a result of the rising awareness of environmental issues and increasingly stringent regulations, the ability of a business to manage environmentally friendly products represents an important competitive edge. This paper presents a study of the impacts of two types of technological solutions, namely, Zero Sum and Synergy, on strategies for timing the introduction of green products. We have developed mathematical models to determine the optimal price, traditional quality, and environmental quality required to maximize profit. In addition, we discuss how differentiation in environmental quality and customer patience impact the choice of product introduction strategies under the commitment and no-commitment scenarios. We also investigate how Zero Sum and Synergy interact with choice. The results show that a business tends to adopt a simultaneous introduction strategy when the differentiation in market condition for environmental quality is high, customer is patient, and/or the business employs the Synergy technology. In addition, we determine that this strategy change is less likely in the commitment scenario, when the technology changes from Zero Sum to Synergy.

Supply chain dynamic configuration as a result of new product development

This study considers supply chain network configuration in an innovative environment while the new product development (NPD) will affect the supply chain configuration (SCC). The time of new product introduction has a significant effect on the market performance while it has an effect on the supply chain configuration. Supplier integration into the new product introduction is the key parameter for successfully new product introduction, which may contribute to supply chain reconfiguration. Consequently By considering the new product development concept, we may face with dynamic supply chain configuration during a planning horizontal time. In this study, a new model is presented to consider the dynamic configuration of a supply chain by developing new products. In the proposed model, the dynamic configuration of a supply chain and the new product launching time is optimized simultaneously. The proposed model considers production, sales and transportation planning for the entire supply chain in order to achieve an integrative and efficient supply as well. Then some numerical analyses have been done to show the applicability of the proposed model. The results show that the new product development has a significant effect on the configuration of supply chain.

Trademark Product Appearance Features, United States and Foreign Protection Evolution: A Need for Clarification and Harmonization

Trademark law has recently undergone a significant evolution both nationally and internationally. In the United States this change resulted from fundamental case law developments, while the creation and establishment of international agreements sparked the international evolution. Trade dress protection also experienced significant change, both in the United States and internationally. This Article focuses on the appearance aspect of trade dress protection.Trade dress includes both the product's packaging and the product's independent appearance, exemplified by the customized design of the packaging juxtaposed with the product's appearance and surface designs. The line between packaging and product appearance features is not easily drawn. For example, while a bottle is itself a product by way of functioning as a container, it could also be construed, for trade dress purposes, as a package for perfume or liquor.New terms, concepts, and issues surfaced in product appearance trademark protection, which resulted in a general change in the direction of intellectual property law. Questions arise concerning the propriety of using trademark protection alone, or using trademark law in combination with a design patent on the same product appearance. These questions demand an understanding of the relationship between trademark law and other fields of intellectual property, particularly patent law and especially utility and design patents. Another related issue is whether protection arises at the time of product introduction, as would be the case if inherently distinctive product appearance features receive protection, or whether product appearance features must acquire secondary meaning within the traditional parameters of trademark protection.While lawyers and judges review the legal issues, the commercial world, primarily industrial designers, continues to create several varieties of product appearance features in an effort to provide more useful and attractive products. The essence of trademark law creates the inherent overlapping of the legal community and the commercial world, and thus, when developing or amending trademark law, the legal community must consider the industrial designers' perspective.Before analyzing current developments, a brief introduction of basic trademark law terms and concepts is necessary to demonstrate how recent changes in trade dress protection align with prior law. To familiarize the reader with basic trademark concepts, this Article first considers word marks and progresses to product appearance feature marks.

Minimum Quality Standards and Novelty Requirements in a One-Short Development Race

Abstract We examine the timing and quality of product introduction in an R&D stopping game, where we allow for horizontal and vertical differentiation in the product market. We observe that discontinuous changes in introduction dates can occur as firms’ abilities as researchers change. Further, when the research abilities of the firms differ, either the high ability firm or the low ability firm may be the first mover. The underlying research abilities of the firms determine the social optimality of the entry patterns we observe. Minimum quality standards and novelty requirements can play a role in correcting these suboptimal patterns of entry. While minimum quality standards increase welfare for a large range of research abilities, we find that increasing the novelty requirement does not necessarily increase either the profits or, consequently, the research investment incentives of the initial innovator, contrary to much of the cumulative innovation literature. Indeed, as the effect of policy interventions differs significantly across industries where quality improvement is steep and those where it is flat, targeted policies towards specific industries as are often observed in minimum quality standards are generally preferable to more broad-based policies.

Minimum Quality Standards and Novelty Requirements in a One-Shot Development Race

The authors examine the timing and quality of product introduction in an R&D stopping game, where they allow for horizontal and vertical differentiation in the product market. They observe that discontinuous changes in introduction dates can occur as firms' abilities as researchers change. Further, the authors observe differences in the social optimality of entry patterns depending on the underlying research abilities of the firms. Minimum quality standards and novelty requirements can play a role in correcting these suboptimal patterns of entry. The authors find that increasing the novelty requirement does not necessarily increase either the profits or, consequently, the investment levels of the initial innovator, contrary to much of the cumulative innovation literature. When the research abilities of the firms differ, either the high ability firm or the low ability firm may be the first mover. Policy interventions have much more ambiguous welfare effects in this asymmetric case, as they can change the order of entry.

Optimal product introduction and life cycle pricing policies for multiple product generations under competition

We consider a firm's timing of new product introductions and pricing of multiple product generations. We analyse the case where a firm manages multiple generations of a product, and where demand of each generation is impacted by the prices of all existing generations and the introduction of new generations. In the case of two successive product generations, we provide closed-form expressions of the optimal product introduction time and optimal pricing strategies under two scenarios: the case of complete replacement of the base product by the new one, and the case of coexisting generations. We also extend our analysis and provide closed-form expressions to a duopoly environment for the complete replacement case. We believe our results are practical and can help firms better manage the product introduction and the life cycle pricing of multiple product generations.

A taxonomy and decision support for the design and manufacture of types of product families

The realization that designing products in families can and does have significant technological and economic advantages over traditional single product design has motivated increasing interest in recent years in formal design tools and methodologies for product family design. However, currently there is no guidance for designers in the first key strategic decisions of product family design, in particular determining the type of product family to design. Hence, in this paper, first a taxonomy of different types of product families is presented which consists of seven types of product families, categorized based on number of products and time of product introduction. Next a methodology is introduced to support designers in deciding which type of product family is appropriate, based upon early knowledge about the nature of the intended product(s) and their intended market(s). From this information it follows both which manufacturing paradigm and which fundamental design strategies are appropriate for each type of product family. Finally, the proposed methodology is illustrated through a case study examining a family of whitewater kayaks.

Optimal Goodwill Path to Introduce a New Product

We consider the problem of determining an optimal goodwill path for the introduction of a new product in a market, while looking for the maximum foreseen profit. The foreseen revenue depends on the product introduction time and on the goodwill level at the same time. We focus on the advertising costs associated with the goodwill evolution and assume that the cost function possesses some rather general features which are shared by the cost functions of the Nerlove-Arrow type models. The dynamic optimization problem is discussed in the calculus of variations framework. A few examples associated with special cost functions are discussed in detail.

Bundling new products with old to signal quality, with application to the sequencing of new products

This paper provides a new rationale for bundling based on informational leverage. Bundling a product of established quality to one of unknown quality can mitigate the problem of asymmetric information encountered in the latter market. Leveraging reputation in one market into another has implications for the timing of new product introductions. Bundling motivated by informational leverage enhances efficiency by increasing consumer’s access to costly information. When the possibility of endogenous timing of product introduction is considered, however, the welfare consequences of bundling are ambiguous. The positive effect of market creation must be weighed against the negative effect of market delay.

Adoption of Low Earth Orbit Satellite Systems: A Diffusion Model under Competition

Low Earth Orbit Satellite (LEOS) systems have started providing communication with one phone number throughout the world. In this paper, the diffusion process of the two LEOS systems is analyzed under competition. We simulate the diffusion process under different scenarios. In these scenarios, we analyze issues related to the timing of product introduction, technology advantage and potential customer base. A model of the potential customer base with network externality is presented. We found that the timing of product introduction can have significant impact on the follower in the market. We found that a follower firm with more advanced technology would have higher probability to succeed in competing against the first mover. In addition, the increase in the potential customer base favors the firm with advanced technology. The network externality effect in the growth of the customer base favors both firms but could be an barrier for the follower to create a critical mass and beat the incumbent firm.