Modern software engineering practice and discussion Chapter 1 IT Industry Innovation

 16.6.1 VCD innovation reading and discussing the story of VCD innovation and decline in China, talking about how pioneers can turn technology leader into lasting market leader, and combining the cycle chart of technology products, let's talk about how to compete if you were a competitor at the time?

A: When we are ahead of the technology:

1. We should be aware of proprietary intellectual property rights and apply for patent protection.

2. continuously improve the technology and quality of the product as required by the market, so that the product is continuously upgraded to meet users' needs.

Iii. price wars are a common means to make products more popular and increase the market share of enterprises. However, the price war is a double-edged sword. A vicious price war that ignores the profit of an enterprise can bring enterprises into the quagmire. This is a dangerous behavior.

4. Excellent after-sales services to protect the interests of consumers.

5. Manufacturers must see the general trend, increase investment in product R & D, and have their own technologies so that they can win in the market competition.

Product Life Cycle (PLC) is the market life of a product, that is, the entire process from entering the market for a new product to being eliminated by the market. Fei Nong believes that product life refers to the marketing life in the city. Product Life is the same as human life, and must go through the cycle of formation, growth, maturity, and recession. In terms of products, we need to go through a stage of development, import, growth, maturity, and recession. In countries of different technical levels, the time and process of this cycle are different. There is a large gap and time difference between the periods. It is precisely this time difference, it is manifested in the technical gap between different countries. It reflects the competitive position of the same product in different markets of different countries, thus determining the changes in international trade and international investment. A typical product life cycle can be divided into four stages, namely the introduction period (or the import period), growth period, maturity period, and recession period.

As a competitor, different measures are taken for different stages of the product.

During the presentation, the product sales volume is small, the promotion cost is high, the manufacturing cost is high, and the sales profit is very low or even negative. According to the characteristics of this phase, we should strive to: Put the products in the market to be targeted; enter the market at the right time; and try to direct the sales force to the most likely buyers, make the market accept the product as soon as possible to shorten the introduction period and enter the growth stage faster.

After the product is introduced in the market, consumers are familiar with the product, the consumption habits have been formed, and the sales volume has increased rapidly. This new product has entered the growth stage. After entering the growth stage, old customers repeatedly purchase and bring new customers. The sales volume surge, and the profit increases rapidly. At this stage, the profit reaches the peak. As the sales volume increases, the production scale gradually expands, and the cost of products gradually decreases, new competitors will enter the competition. As competition intensifies, new product features begin to emerge, product market segments begin, and distribution channels increase. To maintain the market growth, we need to maintain or slightly increase the sales promotion cost, but the average sales promotion cost decreases as sales increase. In view of the characteristics of the growth period, in order to maintain its market growth rate, we can extend the time to maximize profits.

After entering the mature stage, the sales volume of the product grows slowly, gradually reaches the highest peak, and then declines slowly. The sales profit of the product also decreases from the highest point in the growth stage. The market competition is very fierce, similar products of various brands and styles are constantly emerging. For mature products, we recommend that you take the initiative to extend the maturity or recycle the product life cycle. Example: 1. market adjustment. This strategy is not to adjust the product itself, but to discover the new use of the product, seek new users or change the sales promotion method, so that the sales volume of the product can be expanded. 2. Product adjustment. This strategy is to meet the different needs of customers through product adjustment, and attract customers with different needs. Any adjustment to the overall product concept can be considered as a re-launch of the product. 3. Adjust the marketing mix. That is, by comprehensively adjusting the four marketing factors of product, pricing, channel, and promotion, sales volume is increased. Common methods include price reduction, promotion Promotion level improvement, distribution channel extension, and service quality improvement.

In the recession, the sales volume of products decreases sharply. The profits we obtain from such products are very low or even zero. A large number of competitors leave the market, and consumer consumption habits have changed. In the face of products in the recession, we need to conduct a serious research and analysis to determine what strategy to adopt and when to exit the market.

 

Modern software engineering practice and discussion Chapter 1 IT Industry Innovation