Having been initially challenged with the entire process of new product development and introductions due to a slow-moving company, Motorola was able to spin off the new product development of their popular Razr phone and gain significant market share as a result (Burkett, 2005). Each of these examples illustrates how technologies have been used to mitigate the risk of new product introductions. The success of the Razr product launch (Burkett, 2005) is a case in point. Mattel and Coca Cola both have extensive programs for using technology-based systems and applications for listening to customers, yet in the case of the product introductions mentioned, they failed to accurately gauge the level of interest in product concepts.
Legal and Ethical Implications of New Product Development
The legal and ethical considerations of launching an energy drink named after an illegal drug, Cocaine, immediately drew criticism and legal action on the part of parents and consumer groups (Starling, 2007) (Starling, 2006). The ethics of promoting an energy drink to pre-teen and teenage consumers which are also the name of a highly addictive and dangerous drug showed an exceptional lack of legal and ethical judgment. Arguably the launch of Earring Magic Ken by Mattel, who appears to endorse an alternative lifestyle with the costume and earning, was considered unethical and in bad taste by the majority of parents who are the primary decision makers of which toys their children buy (Gillian, 2003). These lapses of judgment on the part of companies happen when the potential for attention in the market overshadows common sense. Developing an energy drink named after an illegal substance just underscores this point.
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