In the idea screening phase of a new product development process, a firm finds that it lacks the resources and expertise necessary to produce the 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

The best course of action for a firm that lacks the resources and expertise necessary to produce a new product is to look for opportunities to form joint or strategic alliances with other firms. This approach can help the firm tap into the resources and expertise of other companies and improve its chances of successfully developing and launching the new product. By collaborating with other firms, the firm can share the risks and costs associated with new product development and benefit from the synergies that come with working together. Choosing to sell existing products at lower prices or discounting the new product idea may not be effective strategies for addressing the underlying challenge of resource and expertise gaps in new product development. Stopping new product development altogether can be a missed opportunity to grow and compete in the market.

In the Idea Screening Phase of a New Product Development