Modeling Analysis on New Products Potential Profits

New products potential profits prediction is a quite difficult task involving a lot of factors such as market construct, pricing strategy and technique capacity performance. The principles of cybernetics and system dynamics (SD) have been used in constructing models, which is developed to analyze the factors related. The results indicate that market-skimming pricing strategy is suitable for the market with customers who behave more like innovators. In the contrary, market-penetration pricing strategy will be better used in the market with customers who behave more like imitators. At the same time, earlier to seize the opportunity of drastic cost reduction, more profits will be got.