Competetive Advantage of Toyota Due to Npd
The following chapter will analyze the different theories related to this research. Firstly it looks up at the strategic challenges faced by Toyota. This is followed by analyzing various tools and models that can help to analyze the company and its environment in detail. These tools include microenvironment (PEST) analysis, SWOT, Porter’s 5 forces, Competitor Analysis and Ansoff matrix chart. Secondly, it looks up at the theory of Innovation that leads to competitive advantage. It also describes the strategy of Innovation. Finally, it defines the concept of New Product Development (NPD) which is another leading factor for gaining competitive advantage.
However, based on these the author would be providing recommendations to the company
3.4New Product Development
Every new product produced in the market increases the sale of the company by 33% i.e. one third of the company which in turn generates a lot of revenue even from the products that were not sold in last five years (Cooper, 2001).
New product development is considered as one of the most important and an affective activity that has brought changes to the market sector due to technology development and fierce competition.
Innovation helps companies in generating there revenues from the products produced during the last five years. According to Crawford, C. Merle (1997), “the new product development of a company depends on its size and type of industry it operates in. New product development can be any product, service or idea which is not newly marketed but is perceived as a new product by the customers”.
The three types of product development phase are concept development, Product design and Pilot testing (Schroeder, R. G. (2003).