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New products can be used to enter new segments or to attempt to dominate a current segment. Firms however should be wary of product proliferation as it increases complexity which will increase factory lead times and result in poor delivery performance. You may wish to consider modifying an existing product instead. Don't forget to consider the capacity required to produce the new product too, as you may need to purchase new plant (which also has a one year lead time).
Product Development Projects
To launch a new or modified product, you must first have completed a product development project for it. Product development projects take one year to complete. As product development projects do not always succeed in producing a design which meets your specifications, you will want to review the results of the development project before launching the product.