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New product development should be controlled by subjecting projects to a series of gates, (or review meetings) to decide whether they have made the required progress and to determine what must be achieved to pass the next gate. qxp Resources and capabilities 7/17/2014 Value drivers 8:52 PM Value chain analysis Page 58 Supply chain management The product portfolio New product development Benchmarking Benchmarking involves establishing targets and comparators against which to compare performance.

C) The competitive gap arises from failures of pricing or promotion. qxp The organisation and its environment 7/17/2014 Environmental analysis 8:54 PM Real options Page 42 Gap analysis Forecasting Scenario planning Foresight Game theory The term is commonly used of a gap in overall performance: that is profitability The profit gap is the difference between the target profits and the forecast profits. (a) First of all the firm can estimate the effects on the gap of any projects or strategies in the pipeline.

How are they new? New to the world New product line Additions to product line Repositioning Improvements/revisions Cost reductions How is it approached? Leader strategy: high cost of R&D, potential high reward, high risk Follower strategy: lower cost, less R&D expertise needed, lower risk, reduced reward The management accountant can help by analysing the cost components of the new product. This may lead to the removal of superfluous features. New product development should be controlled by subjecting projects to a series of gates, (or review meetings) to decide whether they have made the required progress and to determine what must be achieved to pass the next gate.

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