Most business owners in our clime are impatient. They want to make money immediately. In fact, many have abandoned great products and services that would have thrived in few years time because they are in a hurry.
If you are introducing new products into the market, you should give it two to three years to truly penetrate into the market. An impatient business executive won’t like to hear this, but that is the truth.
A major global bank created a strategy for opening new branches abroad. Every new branch they establish in a new country will require investment for at least three years.
It should break even in the fourth year, and should have repaid the total investment by the middle of the sixth year. If it still requires investment by the end of the sixth year, it is a disappointment and should probably be shut down.
Using this strategy frees the parent company from unnecessary pressure and helps the foreign branch to stabilise knowing that the parent company will not expect them to make profit immediately.
A global FMCG company created this strategy for its new products. Its new products should be in the market and selling two to three years after work on them has begun before the company expects it to break even. They should have established themselves as market leaders eighteen months later.
IBM it seems, figures on a five-year lead time for a new major product before market domination. Within another year the new product should then start to grow fast.
It should attain market leadership and profitability fairly early in its second year in the market, have repaid the full investment by the early months of the third year, and peak and level in its fifth year in the market.
To be able to do this, you must take research and development seriously. If all you do is to push new products into the market and wish customers will buy them, you may not know the real waiting period.
You can click this link http://bit.ly/2KseZ4x and sign up for our consulting services, and we will come over to your company and set up a powerful strategy that will help you to monitor the progress of your products and know when to expect them to dominate the market.
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