Demand for New Products

Modern consumerism has resulted in ever-increasing customer demands for differentiated products that meet individualized needs for convenience, functionality, and image. Manufacturers have become more adept at responding to this demand with such systemic changes as Lean Manufacturing [Womack], Flexible Manufacturing Systems, materials resource planning (MRP), and enterprise resource planning (ERP). Service providers such as financial institutions, retailers, and others are beginning to achieve this with software and high-tech solutions such as Web sites that deliver targeted messages to customers. In other words, technology is feeding this frenzy for individualized products and services, and the trend ought to continue as the number of households with personal computers and high-speed access grows.

Geography now plays an increasing role for both new markets and sources of new competition. Countries less invested in older technologies are often more willing to offer the improved functionality, performance, and reliability associated with new technology. Thus, there are opportunities for companies to sell in new geographical markets (provided they adapt to cultural differences [Ronney et al.], and there are threats from new competitors with lower costs, newer technology, and so on.