A cross-functional product development team has been examining a proposed new product intensively for 6 months. The team has decided that although the product is unique and technologically advanced,the cost of production will exceed the price that the consumer would be willing to pay. At this point,the product development team should

Question

Quizplus · Accepted Answer

The best option in this scenario is to recommend that the project be set aside. Continuing to invest in the development of a product that cannot be produced at a cost that the consumer is willing to pay is not a financially sound decision. The team may also explore potential cost-saving measures or modifications to the product, but ultimately, if the price cannot be brought down to a profitable level, it is best to abandon the project and focus on other opportunities. Option A (engaging in creative destruction) and Option B (selling at a loss) are not viable solutions as they would result in financial losses for the company. Option C (turning over the product evaluation to a new team) may be considered, but only if there is reason to believe that a new team would have better ideas or knowledge that could result in a more cost-effective solution.

A Cross-Functional Product Development Team Has Been Examining a Proposed