''TRADE OFF''
In order to get some thing you have to forgive the other thing, although both things are desirable yet mutually exclusive. In economics trade off is expressed as opportunity cost, which is the most preferred alternative given up. For instance if a person has $15, he wants to drink coffee and watch movie in cinema. The movie ticket costs $12 and on the other hand a cup of coffee is of $14.As both are desirable yet mutually exclusive so he has to make choose one option out of both. Another example is, at late night you can either do your assignments or take rest; you can’t do both things at the same time. Companies may face the Challenge of either developing a new product or to further enhance the performance of the old product. In case you spend only on the performance of the current product. You will be better off in the short run but as every product has a life cycle, it is launched, it grows, and at some point, may die. In long run I you have not spent any thing on new product development and your current product dies you will definitely be verse off.
4 comments:
Well,in my opinion its not like this.we will not face any loss in da future if we won't launch a new product.yes its true that innovation leads to success but enhancing or relaunching the product considering the demands of da people can also give us future benefit.the product will not die untill and unless it fulfill the needs of da people.
That's why we have R&D departments. I read in Business Week that companies who spent in 2000-1 lots of money in R&D like apple, years later it paid to a great extent.
Your post reflects what you're going through these days, study, stress, naps... :)
@ Maha,
When a product becomes a dog, you've to dispose it and start working on a new one. or what else?
Maha and Umer thanks for reading this let me tell you that need never dies it is the product that dies either because of new technology or because of strong competition.I hope i have convinced you if not plz ask .Futher i am going to write some interesting stuff so keep your eyes on the blog.
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