When and why a firm embarks on the idea of a new product development process? Discuss. Explain with reference to any consumer durable company of your choice and the reasons there of.

A new product development process is a critical component of a company's growth strategy. It involves the creation, design, and launch of a new product or service to meet the needs and wants of its target customers. A firm embarks on a new product development process for various reasons, such as staying competitive, expanding its product portfolio, increasing revenue, and improving brand image.

Consumer durable companies, such as Samsung, LG, and Whirlpool, are constantly innovating and launching new products to meet the changing needs and preferences of consumers. Let's take the example of Samsung to understand when and why a firm embarks on a new product development process.

When does Samsung embark on a new product development process?

Samsung is a leading consumer electronics company that operates in several product categories, including smartphones, TVs, home appliances, and wearables. The company continuously invests in research and development to stay competitive and launch new products that meet the changing needs and preferences of consumers. Samsung embarks on a new product development process under the following circumstances:

1. Changing Consumer Preferences: Samsung continuously monitors consumer preferences and needs to identify gaps in the market and develop new products to meet those needs. For instance, Samsung launched the Galaxy Fold, a foldable smartphone, in response to the increasing demand for larger screens and multi-tasking capabilities.
2. Competitive Pressure: Samsung faces stiff competition from other consumer electronics companies such as Apple, Xiaomi, and Huawei. To stay competitive, Samsung continuously innovates and launches new products that offer unique features and benefits to consumers. For instance, Samsung launched the Galaxy S21 series, a range of smartphones with advanced camera features, to compete with Apple's iPhone 12.
3. Technological Advancements: Samsung invests heavily in research and development to stay at the forefront of technological advancements. The company launches new products to showcase its technological prowess and stay ahead of the competition. For instance, Samsung launched The Wall, a modular MicroLED TV that offers stunning visuals and unparalleled picture quality.

Why does Samsung embark on a new product development process?

Samsung embarks on a new product development process for various reasons, including:

1. Increased Revenue: Launching new products helps Samsung increase its revenue and market share. By developing innovative products that meet the needs and preferences of consumers, Samsung can capture new markets and increase its sales.
2. Improving Brand Image: Launching new products can also improve Samsung's brand image and reputation. By showcasing its technological advancements and innovative products, Samsung can position itself as a leader in the consumer electronics industry and attract more customers.
3. Expanding Product Portfolio: Launching new products helps Samsung expand its product portfolio and cater to a broader range of customer needs. By launching new products in different product categories, Samsung can capture new markets and increase its customer base.

In conclusion, a firm embarks on a new product development process to stay competitive, expand its product portfolio, increase revenue, and improve its brand image. Companies like Samsung continuously invest in research and development to identify consumer needs and preferences, stay ahead of the competition, and showcase their technological advancements. By launching new products that offer unique features and benefits to consumers, Samsung can increase its market share, revenue, and customer base. 

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