In order to be successful this product must offer a higher value to customer.
So now here comes in the importance of developing a new product. If in a market, any player has innovated such a product which can provide higher value then it simply takes away market share. In such a condition it becomes imperative for other players of market to bring in their innovation because any late response in this regard simply means lost customers, which is not desired by any business.
In other words it can be explained as that every business requires a sustainable competitive advantage. In some businesses competitive advantage is totally dependent on the innovation associated with the products. So in order to create a sustainable competitive advantage, all businesses are required to stay up to date and keep bringing in new products.
There is no doubt in this regard that every business has to stay up to date and ensure that they are offering the best possible product or a product which can provide the company a sustainable competitive advantage. However there are some industries which require some extra efforts in the field of product development, research and innovation. One of the most common industries in this regard is the pharmaceutical industry. Pharmaceutical companies invest millions of dollars annually on their research and department. This is because of the reason that they have to ensure that they come up with the latest and most effective combination of drugs. This happens because their whole profits are based on the relative effectiveness of a medicine. In addition to this if a pharmaceutical company has invented a new medicine to cure a disease then this innovation can promise company high profits for the upcoming years. This happens because when a company innovate a new product then it can get patents for it. These patents provide company an opportunity to be the