CONSTRUCT-it Equipment When Michael Williams, operations director of Antwerp-bas

Question

CONSTRUCT-it Equipment

When Michael Williams, operations director of Antwerp-based Construct-it Equipment looked at future prospects for his business, he didn’t like what he saw. The company’s main revenue came from hiring out pneumatic hammers to the construction industry. But, in the next few years, these hammers will be phased out when new noise and environment regulations come into effect in Belgium.

Michael Williams decides to take the initiative by developing a new environmentally friendly hammer which makes less noise.

In a essay advise Michael Williams on how he should manage the new product development process by the following below:

1. What kind of new product he would should create ?
2. What is the risk involved and how can it can be reduced?
3. is this a simple new product?
4. Who are the customers- are these consumer buyers or organizational buyers or both? etc.
Ensure that you apply the principles to the case.

Explanation / Answer

1. Michael Williams must take into account to reduce noise pollution and create an environment friendly product since government regulations must be followed. He must create hammer which have inbuilt silencers installed so that noise pollution is limited to a large extent. Also he must use the material which is environment friendly to create the hammers. The use of plastics, polluting metals etc must be avoided and clean materials which cater to the environment must be used.

2. Biggest risk is the usage of such hammers, i.e. will they be able to exactly replace the existing hammers or not? Michael must do the test run of these hammers very well before selling them so that their usage is exactly the same as previous ones. Also cost must be kept same or less than the existing hammers.

3. Yes this is a simple new product and must have all the features of the existing product plus environment friendly and produce less noise pollution.

4. The customers for this product are organizational buyers because such hammers are used in the construction industry and is of use for the organizations involved in building and construction industry. This product is not of much use for the consumer buyers.

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