Crafting a Deployment Strategy

12 important questions on Crafting a Deployment Strategy

What are 2 factors to keep in mind when time a launch strategic?

1. Business cycle or seasonal effects
2. Ensure that production capacity and complementary goods or services are in place

What are the 2 important focusses for launch timing?

1. Strategic launch timing
2. Optimizing cash flow versus embracing cannibalization

What is meant with the term cannibalisation?

When a firm’s sales of one product (or at one location) diminish its sales of another of its products (or at another of its locations). Traditionally, research on product life cycles has emphasized the importance of timing new product introduction so as to optimize cash flows or profits from each generation and minimize cannibalization.
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What is backward compatible?

When products of a technological generation can work with products of a previous generation. For example, a computer is backward compatible if it can run the same software as a previous generation of the computer

What the survival pricing strategy?

Means that the price covers the variable cost and some fixed cost. It is a short term strategy and often used in markets which have competitive pricing.

What are the advantages of using penetration pricing?

If its volume increases and drives its production costs down, the firm can achieve a very powerful position: it can have a low-cost position that enables it to earn profits despite a low price, and it can have a substantial share of the market.

Why are firms in industries characterised by increasing return will often use the objective of maximising market share and penetration pricing strategy?

There is strong pressure for the industry to adopt a single dominant design (as discussed in Chapter Four). It is in the firm’s best interest to accelerate adoption of its technology, building its installed base, attracting developers of complementary goods, and riding down the learning curve for its production costs.

What are 4 different strategies to accelerate distribution in order to rapid deploy?

1. Alliances with distributors
2. Bundling relationships
3. Contracts and sponsorship
4. Guarantees and consignment

What is meant with bundling relationships?

Firms can accelerate distribution of a new technology by bundling it with another product that is already in wide use.

What are the three major marketing methods for a technological innovation?

1. Advertising
2. Promotions
3. Publicity/public relations
4. preannoucements and press releases (aggressive promotion)

When designing a marketing plan, what does the firm must take into account?

The nature of the innovation and the nature of the customer.

What are 5 strategies in order to accelerate the distribution, to become a dominant design?

1. alliances with distributors
2. building relationships
3. contracts and sponsorships
4. guarantees and consignments 
5. marketing

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