New-Product Options

New-Product Options

There are a variety of types of new products and ways to create them.


Make or Buy:- A company can add new products through acquisition or development. When acquiring, the company can buy other companies, patents from other companies, or a license or franchise from another company. Swiss food giant Nestlé has increased its presence in North America by acquiring such diverse brands as Carnation, Hills Brothers, Stouffer’s, Ralston Purina, Dreyer’s Ice Cream, Chef America, Jenny Craig, and Gerber. But firms can successfully make only so many acquisitions. At some point, they need organic growth— the development of new products from within. Praxair, worldwide provider of industrial gases, achieved an ambitious goal of $200 million per year of double-digit new annual sales growth only through a healthy dose of organic growth and a large number of smaller but significant $5 million projects

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