In the idea screening phase of a new product development process,a firm finds that it lacks the resources and expertise necessary to produce a product.Which of the following is the best course of action for the firm?
A)It should consider the strategy of selling its existing products at lower prices.
B)It should stop wasting time,manpower,and funds on new product development.
C)It should quickly discount the new product idea.
D)It should consider forming joint or strategic alliances with other firms.

Question

Quizplus · Accepted Answer

Forming joint or strategic alliances with other firms can provide the necessary resources and expertise that the firm lacks for product development. It is a common strategy used by firms to pool resources and knowledge to achieve a common goal, which in this case is to produce a new product. Option A is not a viable solution as the firm is lacking resources and cannot afford to lower prices. Option B is also not a viable solution as new product development is important for a firm's growth and competitiveness. Option C is premature and should only be considered after thorough evaluation of the product idea.

In the Idea Screening Phase of a New Product Development