New Product Development from the Perspective of Creating a Competitive Advantage

Abstract

Abstract It is acknowledged that achieving product-based competitive advantage is a key task for a company. However, there is still a research gap in determining those specific actions in the process of developing new products that arise from companies’ efforts to achieve product-based competitive advantage. Therefore, the aim of this study is to determine the specific actions in the new product development (NPD) process that result from companies’ intention to introduce a new product to the market, enabling the achievement of a competitive advantage. The primary research method used in this study is deductive reasoning, supplemented by a literature review. The result of the study is the proposal of three types of actions: a) evaluating an opportunity in terms of its potential to generate a competitive advantage; b) creating a new product with high economic value; and c) assessing both the planned new product and the new product introduced to the market in terms of achieving a competitive advantage. The latter two types of actions can be undertaken at various stages of the NPD process and can pertain to the product concept itself and to specific product forms (e.g., prototypes, pilot products). These proposed actions are significant because attaining a product-based competitive advantage contributes to the achievement of other objectives related to new products (e.g., revenue generation). Therefore, it is recommended that companies incorporate these actions into their NPD process. This study contributes to the field of management by proposing few specific actions in each phase of the NPD process, which arise from a company's intention to achieve a product-based competitive advantage, addressing a previous gap in the literature.