New products or services come into existence as result of efforts made by enterprises and individuals where technology reforms, appearance of new consumer needs and the economic as well as social changes are properly incorporated. Various new industries have come into existence in different fields ranging from the light technology area represented by personal computer and optical communication, a while ago, to various service industries of today.
Any new industry has an uncertain future because of various factors like uncertain future prospects of the technology, all the customers are new or the strategy difference has not stabilised. It is also not certain as to what type of competition will prevail. Further, it is very natural that the size of the industry is also not very big. However, though the risk involved is also very big in this type of industry, the possibilities of a very high return are also very high, provided it succeeds. If it works well, it may be possible to create an environment which is which is beneficial for one’s company.
In any new industry, it is very important to construct a perfect system covering procurement of material, production and sales, after taking positive and resolute decisions on the basis of development of creative technology. One must not fear the risks involved even as compared to the quantity of management resources. There are many instances where the venture companies, which do not have very rich management resources, have proved to become the pioneer of the new industries.
This, however, does not mean that the planning is unnecessary. It is necessary to create a feasible scenario which is beneficial to one’s company and then making creative plan and efforts in that direction. This type of scenario can probably be created by systematically developing the product and the technology forecasting, future analysis for the market and competition environment etc.
The most important requirement in particular, in any new industry, is to find out the difference and to fix the customer segment which shall buy the new products from the industry in the initial stage. Therefore, this will require a proper study for fixing the targets on the basis of customer needs and purchasing attitudes as well as the switching cost etc. Further, in this type of industry, there are some sensitive problems while considering how one must confront the competition rival. There is a fear that the industry may face the problem of image, trust and disorientation from the customers. Therefore, it is necessary to establish the cooperative relationship to some extent.
For example, it is possible to widen the technology base through cross- licensing of patents. Sometimes, letting other companies own the company to a small extent, also helps in promoting the popularity of the products. This increases the customer awareness about the product. Further, cooperation on the front of standardisation is also beneficial.
Any new industry has an uncertain future because of various factors like uncertain future prospects of the technology, all the customers are new or the strategy difference has not stabilised. It is also not certain as to what type of competition will prevail. Further, it is very natural that the size of the industry is also not very big. However, though the risk involved is also very big in this type of industry, the possibilities of a very high return are also very high, provided it succeeds. If it works well, it may be possible to create an environment which is which is beneficial for one’s company.
In any new industry, it is very important to construct a perfect system covering procurement of material, production and sales, after taking positive and resolute decisions on the basis of development of creative technology. One must not fear the risks involved even as compared to the quantity of management resources. There are many instances where the venture companies, which do not have very rich management resources, have proved to become the pioneer of the new industries.
This, however, does not mean that the planning is unnecessary. It is necessary to create a feasible scenario which is beneficial to one’s company and then making creative plan and efforts in that direction. This type of scenario can probably be created by systematically developing the product and the technology forecasting, future analysis for the market and competition environment etc.
The most important requirement in particular, in any new industry, is to find out the difference and to fix the customer segment which shall buy the new products from the industry in the initial stage. Therefore, this will require a proper study for fixing the targets on the basis of customer needs and purchasing attitudes as well as the switching cost etc. Further, in this type of industry, there are some sensitive problems while considering how one must confront the competition rival. There is a fear that the industry may face the problem of image, trust and disorientation from the customers. Therefore, it is necessary to establish the cooperative relationship to some extent.
For example, it is possible to widen the technology base through cross- licensing of patents. Sometimes, letting other companies own the company to a small extent, also helps in promoting the popularity of the products. This increases the customer awareness about the product. Further, cooperation on the front of standardisation is also beneficial.