New Product Development Case Study Example | Topics and Well Written Essays - 2500 words

New Product Development - Case Study Example It owns brands like easy Car, easy Money, easy Internet caf, easy Cinema, easy Pizza, easy Cruise, easy Mobile, easy Watch, easy Hotels, and easy Jobs etc. This strategy was called "diversification within diversification". This means that the company's individual business units become recession proofed by moving into as many diversified fields as possible, while enhancing the financial strength of the company. The Company follows the "easy" format of taking away the frills in something to make it cheaper overall. In the last few years the company has started to franchise the businesses to expand, and cut down costs. The easy Group profits by either selling shares in the businesses or by licensing or franchising the brand to reputable partners. easy Clothes has a range of apparels to cater to the taste and pockets of the young generation as well as the busy professionals. The easy Shirt comes in the price range 4, 18 and 75pounds. The high priced range is wrinkle free. The pullover also comes in three price range and the high priced one would cater to the older generation which prefers extremely soft clothes. Jeans also has three versions with the expensive one being more rugged. The low priced version of clothes would cater to the lower income group which is highly price sensitive. The market attractiveness could be analysed using Porter's model and the internal analysis could be done by value chain analysis. The market attractiveness varies with the market size, annual market growth rate, profit margins etc.The use of Porter's Five Forces mainly focuses on the industry structure analysis in the organisations external environment. It reveals the source of competition in an industry and external influence including the threats and opportunities of the industry that organisation has to face to obtain competitive advantage. Porter defines the rivalry of the organisation in relation to the industry where high rivalry leads to low profits. The threats from new entrants are heights of the barriers in place to stop them and define the profitability of the industry. Threats from substitutes is the threat by others to copy the product so the margin for guaranteed profit goes low and customers are more prone to change. The bargaining power of buyers depends on the price of the product and the leverage the customer possesses. Similarly the power of the suppliers is determined by how much the buyer needs the product and how much they are willing to pay. easyClothes is a company dealing with apparels. This industry is very competitive. There are some brands driven by quality and some only by price. Different companies have different target segments.easybusiness has been successful in creating a brand name in the market which caters to the price and brand/quality sensitive customers. Core Competence Matrix: -