Part 3
MARKET CONSTRAINTS

The chapters in Part 3 address market constraints, which we define as relating to particularities of specific markets that are targeted for the new product under development. Figure I.1 in the Introduction outlines the particular market-related constraints each chapter focuses on and indicates how these constraints typically arise in the new product development (NPD) process.

Chapter 7, by Ronny Reinhardt, acts as an overall organizing chapter for firms addressing low-end markets, which are defined as markets of customers with a low willingness or ability to pay. Their low willingness or ability to pay prevents them from purchasing currently available products. They typically go without or make do somehow. This chapter identifies eight capabilities that firms need to develop to adapt the standard NPD process (Introduction, Figure I.2) so that they can repeatedly develop low-end innovations. The chapter makes specific suggested changes for how to successfully adapt the standard NPD process to achieve each organizational or process capability.

Chapter 8, by Aruna Shekar and Andrew Drain, focuses on markets with a severe lack of resources, going beyond customers' low ability to pay. These markets also have customers with lower educational backgrounds, less mechanical knowledge, limited or nonexistent utilities, and other infrastructure holes. The chapter presents two specific adaptations necessary for more successfully innovating for low-resource markets and discusses how to implement them: new approaches to user interaction tasks to better understand the full implications of the low-resource context and partnering with local intermediaries for understanding the context and providing credence to both the innovation as a solution and the innovating firm as a provider.

Chapter 9, by Nivedita Agarwal and Alexander Brem, provides five specific inclusive strategies to further address markets constrained specifically by underdeveloped infrastructures, using the Indian healthcare market as the example in which explanations of the solutions to the constraints in these markets are embedded. The authors explicate how implementing these different adaptations can overcome infrastructure limitations in low-resource markets.

Low-end markets exhibit two additional cultural differences that frequently impede successful development and commercialization of new products. As covered in Chapter 10, these are the special considerations of status due to gender and social hierarchy, which can have detrimental effects on individuals and firms trying to sell into these markets. This chapter, by José Antonio Rosa and Shikha Upadhyaya, describes these constraints and presents five solutions for adapting the organization and its processes to address them successfully.

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