Introduction
The business operation of any company is heavily influenced by some crucial factors that are consequential of key aspects of business environments such as technical, legislative, competitive, economic, socio-cultural, and political issues. Among such critical factors, the technical aspects of business innovation are typified by a dynamic character on account of the increasingly changing nature of product innovation to enhance customer satisfaction. Amongst the various companies marked with innovative techniques and new products, a pre-paid cell phone was proposed. As per field experts, a product is an item that can be put up for sale in the market for grabbing the attention, achievement, utilization, or consumption and would be capable of meeting the needs and demands of the purchaser. This new product, the prepaid cell phone, would do just that through a range of innovations and it would be targeting the economic group who otherwise could not afford a high-priced product like any high-end pre-paid cell phone but always craves for it. Thus, this new product would be a cheap but attractive substitute for a high-end pre-paid cell phone. A benchmark of such a phone would be AT&T.
Benchmark
AT&T is a globally acknowledged market leader operating in the fields of data-networking hardware and software, earning approximately $41.5 billion in the form of revenue in the financial year 2009. (Nilsson 2008) As a key market dominator, the firm is well-situated and is capable of taking advantage of the growing demands for complex technology all across an economically emergent world order. AT&T obtains almost half of its sale volumes from within the U.S. with the remaining being split amongst Europe and the rest of the economies of the developing world. Thus, it is obvious that it is the best possible company for the benchmark of the new product.
Core strength
The core strength of AT&T lies in its new next-generation network processes that consume various kinds of signals, such as video (e.g., conferencing, Internet), audio, and data. The utilization of such high-bandwidth requiring applications is fostering the demand for an industry-wide network upgrading. AT&T supplies IP-based routers, switches in the market and caters to the needs of the consumers in related technologies that are capable of supporting larger bandwidth requirements and controlling a variety of applications. (Gilley 2009) This increase has been credited to the growth in the gross product sale volumes of advanced technologies. The advanced technologies division incorporates the freshly procured technology. (Nilsson 2008)
Learning procedure from AT&T
In terms of the socio-cultural and gender demographics of the target audience, AT&T fits the prototype of the young, successful male customer interested in technological products. According to the findings of a thorough customer, a survey carried out recently to identify the potential customer base and the needs of the average high end pre-paid cell phone and AT&T user, the typical high end pre-paid cell phone user appeared to be a man in his early 30’s holding a college graduation degree with average annual earnings of $75,600 which is 26 percent above the standard American salary. (Cowart, 2009) This company has a well-defined market structure. Thus, to compete it is essential to formulate a similar target market and with a better economic approach, it is possible to implement the strategy learn from this company. Thus, the new product would be on the line of high-end pre-paid cell phones but it would be much cheaper to invite the average economic group.
Strategy for new product
The new product would not include music features to reduce cost and to avoid competition with high-end pre-paid cell phones and the processor speed would be lower but it would include several other features that are low cost but attractive for economic users. There would be a built-in 4-megapixel camera that would come with an auto-focus feature. This new feature would allow the user to just tap the screen preview in the region where the exposure is required, and white balance and focus are to be calculated. The tap position would be capable of making a huge difference in the brightness, color due to the exposure and white balance of the refined photo making it a better experience altogether. A new voice-controlled calling feature would be introduced to address complaints received on the number of steps required to make a simple call. This feature allows the user to press the Home button for a moment, and issue a voice command to make a call easily and conveniently. (Trelease, 2008)
The applications provided in the new product would be integrated to work in concert and offer improved functionality by connecting application programs like Safari, Maps, and SMS with contact book, email, and other applications. Its compatibility level has been expanded to several Mac-based PC applications. Significantly it is also compatible with Microsoft Exchange, which is the most widely used communication program for business purposes. (White, 2009)
Additionally, there would be other cheap but attractive features like Electronic Compass, Accelerometer, FEM Quad-Band GSM, Tri-Band UMTS Antenna Switch and Quad-Band GSM RX RF SAW Filters, Flash Memory, Display Module, and Touch Screen Assembly. (Sadun, 2009) All these features would make the new phone irresistible for buyers who were not able to buy a high-end pre-paid cell phone and thus this new phone would be a great success.
References
Cowart, K. (2009). A structural look at consumer innovativeness and self-congruence in new product purchases. Psychology and Marketing 25(12), 1111-1130.
Gilley, A. (2009). Organizational change: Motivation, communication, and leadership effectiveness, Performance Improvement Quarterly, 21(4), 75-94.
Nilsson, A. (2008). Breaking hierarchies. MI: Uppsala University, Department of Business Studies.
Sadun, E. (2009). The Iphone Developer’s Cookbook: Building Applications With the Iphone 3.0 Sdk. NY: Addison Wesley Pub Co Inc.
Trelease, R. (2008) Diffusion of innovations: Smartphones and wireless anatomy learning resources. Anatomical Sciences Education, 1(6), 233-239.
White, I. (2009). A simple, low-cost stereographic video capture and viewing solution for teaching psychomotor skills using online delivery. British Journal of Educational Technology 34(4), 34-53.