New Product Development
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New product development is a rather risky undertaking and should normally be undertaken after conducting marketing research. Those companies who develop new products are referred to as "first movers", wherein they perceive a need for a new product and a potential target market for the product.
Often the "first movers" are later joined by the "followers" or "me too-ers" when the product is deemed to be successful. The followers incur less risk than the first movers and usually attempt to capitalize by improving on weaknesses of the new offering with their competitive offering.