1. What capabilities and resources does a company need to develop new products? Which of these capabilities and resources does Bella India have? There are 4 competencies that a manufacturing company needs to successfully penetrate the market with new products.
1) Market Research Ability: a company needs to know in details about the market. The details include from the demand for specific function in a product, demand for specific service related to the product, to information about suppliers in the market.
2) High Quality: a company needs to insure high quality of the product in order to succeed in the market. In order to guarantee the level of quality in manufacturing industry, high level of technology reflected in manufacturing facilities and high quality of labor force in order to operate the facilities are crucial.
- Technology
- Labor force
3) Low Cost: a company needs ability to produce a new product with lower cost compared to its competitors.
4) Organizational Structure: a company requires right form of organizational structure depending on its industry and external environment. With an appropriate match between structure and environment, the company’s internal communication and decision making process would work effectively. Among those 4 competencies, what Bella India has towards Indian market is as follows: 1) Market Research Ability, 2) High Quality, 3) Organizational Structure. 1) Market Research Ability: Bella Healthcare has extensive channel to access information of market in both the U.S. and India. This allowed Bella Healthcare to have plenty of information about suppliers in both the U.S. and India, and to point out the local demand towards A/S. 2) High Quality - Technology: Since its inception in 1969, Bella Health Care has accumulated its technology reflected in its plant in St. Louis. Moreover, since 1990s, Bella Health Care India has also showed high level of technology proficiency. - Labor