In other words, profitability gains tend to demonstrate augmenting profits. High gains can compel other stakeholders to join the industry and attempt to compete with the existing stakeholders. However, the phenomenon mostly depends on a number of factors including the ease of imitating product features as well as production processes. In most cases, interested parties find it challenging to join highly competitive industries. In the long run, all organizations in a given sector would have identical constant degrees of profits, if all markets were perfectly competitive (Torok & Cordon2002). In the real business world, however, firms demonstrate different profit levels with certain industries and certain companies systematically attaining better gains than other stakeholders. This state of affairs is caused by product differentiation, innovation, barriers to entry and imperfect competition. The most imperative factor that affects the launch of new commodity relates to the ability of the commodity to enhance the overall profitability. The item itself might not generate a large upsurge in profits but might create opportunities to fresh revenue possibilities (Torok & Cordon2002). A commodity that assists in creating novel opportunities and substantial ongoing earnings is recommendable at all cost. .
1.4 Market Analysis.
Market analysis is an important aspect of any startup strategy. Management teams that get it right at this stage demonstrate a clear understanding of the headed direction. An excellent analysis allows the marketer to sidestep pitfalls, lure investorsand most significantly, attract clients. It is desirable to realize that launching new products may necessitate the creation of business plans and approaches for different purposes. Where the launching of an item is an internal plan, there is no need for industrial data to corroborate the forecasted market because market analysis might be necessary (Wu 2012).