Question

Which of the following is a disadvantage of gradually introducing a product to market?

a) It reduces the risk of introducing a new product.
b) It is easier logistically to introduce it all at once.
c) It is difficult to slow down production enough for a gradual introduction.
d) It allows competitors to monitor the results of the new product.
e) It prevents product differentiation based on geographical differences.

Answer 1

The correct option is C). A disadvantage of gradually introducing a product to the market is enabling competitors to gain insights into strategy and market reception, which might allow them to compete more effectively. Despite the reduced risk and opportunity for feedback this strategy provides, it also comes with substantial logistical challenges.

Step-by-step explanation:

A disadvantage of gradually introducing a product to the market is that it allows competitors to monitor the results of the new product and potentially mimic or improve upon the strategy or product features. This approach can make it more challenging to maintain a competitive advantage, as competitors may get insights into the product's performance and user reception, which they can use to rush similar or enhanced products to the market.

While a gradual introduction has its advantages, such as reducing the risk of introducing a new product and allowing for feedback to fine-tune the product, it also has this notable disadvantage. Moreover, logistical challenges can arise, as the supply side of the markets typically finds it easier to expand production over the long term, as ramping up production facilities and labor can be more costly and difficult in the short run.