4.1. Plan Stage- Step 1: Setting the target-selling price
The literature indicate that the Japanese companies set a tentative target selling price for their product by considering various internal and external factors such as top management strategies, profitability objectives, product attributes and functionality, and competitors’ reaction. Concurrently based on the overall corporate planning, a thorough market research was conducted to identify the product features and specifications required by the customers (Cooper & Slagmulder, 1999). As suggested by the literature, this step occurred at the case company. Nevertheless, eventhough the case company conducted various market surveys, a new product market survey was conducted after the product features and specifications were already conceptualized. Company A did not conduct a new product market survey to identify each feature and specification the customers’ required for new product nor to decide the features and specifications solely from the customers’ feedbacks. Instead, the objective of this new product market survey was only to verify or justify the prior assumptions concerning the upper body related new product features and specifications. This difference might be due to the range of changes that could be made by the case company for the new product against its original or base model. Since Company A used its joint venture’s model base platform, the platform parts such as chassis, engine and transmission parts were carried over from its joint venture company’s base model. The case company only customized the upper body of the product to suit Malaysian market’s requirement in terms of styling, features and ride comfort. This limits the level of customer orientation in its new product development. Thus: Proposition 1: The degree of customer orientation may influence the design of TCM implementation process.
In the Malaysian context, with many joint venture companies, most of the products are designed and developed in the respective company headquarters overseas. The subsidiary companies in Malaysia have limited scope in
4.1. Plan Stage- Step 1: Setting the target-selling price The literature indicate that the Japanese companies set a tentative target selling price for their product by considering various internal and external factors such as top management strategies, profitability objectives, product attributes and functionality, and competitors’ reaction. Concurrently based on the overall corporate planning, a thorough market research was conducted to identify the product features and specifications required by the customers (Cooper & Slagmulder, 1999). As suggested by the literature, this step occurred at the case company. Nevertheless, eventhough the case company conducted various market surveys, a new product market survey was conducted after the product features and specifications were already conceptualized. Company A did not conduct a new product market survey to identify each feature and specification the customers’ required for new product nor to decide the features and specifications solely from the customers’ feedbacks. Instead, the objective of this new product market survey was only to verify or justify the prior assumptions concerning the upper body related new product features and specifications. This difference might be due to the range of changes that could be made by the case company for the new product against its original or base model. Since Company A used its joint venture’s model base platform, the platform parts such as chassis, engine and transmission parts were carried over from its joint venture company’s base model. The case company only customized the upper body of the product to suit Malaysian market’s requirement in terms of styling, features and ride comfort. This limits the level of customer orientation in its new product development. Thus: Proposition 1: The degree of customer orientation may influence the design of TCM implementation process. In the Malaysian context, with many joint venture companies, most of the products are designed and developed in the respective company headquarters overseas. The subsidiary companies in Malaysia have limited scope in
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