Product development strategies for innovative product

Product development based on customer preferences with applications of innovative technologies is a key to obtaining a larger market share and faster sales growth for organizations in high-tech products market. The purpose of this paper is to develop series of product development strategies designed for different innovation levels and recommend the strategic approach for organizations frequently introducing new products. The strategies are developed from three viewpoints: level of product improvement, scope of product change, and speed of product change. Level of product improvement shows level of technology application differences for products. Scope of product change explains the affected area of product categories required to be modified due to the innovative product introduction to the same market. Speed of product change indicates speed of technology transmission to the same or other product categories in the same target market after innovative products are introduced to the market. The each strategy allocated by the three factors is effective method for designing their products to satisfy target customers´ expectations. The factors are strategically generated by the analysis of current competitive innovative market condition. The suggested strategy enables organizations to define own competitive skills and target customer characteristics. The strategy leads more precise and accurate application of effective product development.