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ide mix of Products as well as the content of a product An American chemical additives pany versus Its European petitor: 1. Did the petitor’s approach suggest that customer needs were as 2. different as this business’s executives assumed? 3. 2. Did this business’s product line strategy incur unnecessary costs? American Designing Global Products and Services Benefits Cost Reduction The higher the development cost relative To expected revenues, the more need there Is to develop a few global or regional products Rather than many national products . ethical drugs Improved Quality Reducing the worldwide number of products allows financial and management resources to be focused on the smaller number of products Enhanced Customer Preference Hertz lesson Competitive Leverage Japanese experience suggests that smaller Competitors may have greater need for Standardized products Drawbacks Some aspects of national needs may Have to be sacrificed Canon chose to design from scratch a global products New Global Process of NPD ? The process of New Product Development (NPD), a key work of functions and subsidiaries, is receiving increasing attention for several reasons: ? Because petitive advantages at the product level do not last long in most industries, the winners are those who create a sequence of shortlived advantages ? As product life cycles get shorter, with fewer years to recover the fixed RD costs, products must be spread across more countries to capture the necessary revenue. The process is one of the principal drivers for the shift in power from countries to business units. ? Attractive features: use of new electronic tools and newproduct architectures。 a product concept in digital form can be worked on from anywhere by anyone. New Global Process of NPD ? The Evolution of NPD ? 1960s to 1970s: ? The process sequential and long ? Relatively straightforward ? All aspects have changed: ? An increasing number of “design for” initiatives ? Design for manufacturability ? Design for reliability (quality assurance engineers entered the design process ? Design for serviceability ? Design for usability: anthropologists entered the process, along with artists and designers ? New: design for recyclability New Global Process of N