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Jeffery Reply
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Jeffery Reply
Great post Jeffrey! The post was fascinating and explicitly identified the problems
facing Midtech’s new product development plans and possible remedies to those issues. It is
worth noting that companies face quite some challenges when coming up with a new product.
The situation often worsens when improving on an existing product since it renders the
existing products obsolete. Meditech is not an exemption to these problems. The company
faces significant challenges with its new product launches, most of which can be linked to
misalignment in the supply chain. The sales department might have also done poor
forecasting of the demand for the new product leading to underproduction. This created the
problem of demand and supply, where the quantity demanded exceeded the quantity
produced by the company.
Moreover, it is the customer service manager’s responsibility to identify problems and
raise concerns to formulate a remedial action plan. This is because they are the ones who
often interact with the external environment, that is, the consumers and suppliers. They
receive feedback from the customers and are responsible for airing the customer's views to
the company's management. Caruana (2002) suggests that service quality leads to customer
satisfaction. For Meditech, their failure in this aspect can be pinned entirely on their customer
service management team.
Nonetheless, an organization’s approach to the problems it faces due to a new product
is critical to its success. Organizations can develop new strategies on how they will learn
from their previous mistakes and improve on them. The decisions made at the organizational
level are key and should target a sustained market presence instead of focusing on rapid
growth. Meditech can follow Apple's model of diminishing variants offering fewer but high-
priced quality products (Montgomerie & Roscoe, 2013). This will ensure that their products
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are not out of stock and are only available to the customers who can afford to buy them. It
will, in the long run, solve the problem of the supply chain.
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References
Caruana, A. (2002). Service loyalty: The effects of service quality and the mediating role of
customer satisfaction. European Journal of Marketing, 36(7/8), 811–828.
https://doi.org/10.1108/03090560210430818
Montgomerie, J., & Roscoe, S. (2013). Owning the consumer—Getting to the core of the
Apple business model. Accounting Forum, 37(4), 290–299.
https://doi.org/10.1016/j.accfor.2013.06.003
