Question

Recently, the Polish General Corporation, well-known for manufacturing appliances and automobile parts, initiated a $13 billion project to produce automobiles. A great deal of learning on the part of management and employees was required. Even though pressure was mounting to get a new product to market in early 2012, the production manager of the newly formed automobile division insisted on almost a year of trial runs before sales started because workers have to do their jobs 60 to 100 times before they can memorize the right sequence. The launch date was set for early 2013. What are the consequences of using this approach to enter the market with a new product?

Answer 1

There are consequences as follows:

1. Demand not catered on time, will make the other competitors to cater the demand and grab the market share.

2. Loss of potential revenue generation opportunity of 1 year time

3. Too many trial runs and no sales, will make the model become old even before sales starts.

Further, it shows the inability of the workers to get adapted to the new design and these workers need skill upgrade as well, to be ready for the new model.