Question

In many ways taking a socially valuable concept to market has much in common with ‘conventional’ new product development.Where do you see the similarities and differences?

Textbook: essentials of entrepreneurship and small business management

Answer 1

In a conventional product development process, an idea is identified, screened and evaluated for its viability, a business plan is prepared and checked if it is feasible, product is developed, and tested before it can be commercially launched for the masses. On the other hand, in a socially valuable concept, the idea should relate to the well being of the society and should aimed at solving a social issue, besides being financially viable and commercially acceptable and sustainable by the target groups of the society.

The points of similarity between the two approaches are the commercial viability of the idea, its degree of acceptance in the marketplace and its sustainability for long term. This is essential, because the aim of any business, whether for social cause or for purely commercial motives, is to be financially profitable and sustainable for the long term, without which it can't survive, however good, benign and welfare oriented intentions might the company has. The points of differences lie in the strategic objectives of the company, where a product, right from the stage of idea formation must be inclined towards the interests of the society and resolving a social issue. Other difference is in the business model, where in conventional process, the idea is to maximise the profits and gaining highest market share, thereby increasing shareholders' wealth, the approach in the social model, is to reach as many people as possible and bring about as much of social change as possible, within least resources, and being financially profitable ans sustainable at the same time.