Showstoppers refer to
a. a sudden loss of financial backing even though the item is in production.
b. factors that might doom a product.
c. a situation where a competitor’s product suddenly beats a firm’s new product to the marketplace.
d. creative or innovative members of a marketing team.
e. unexpected alternative uses for a product that result in a sudden increase in sales.
The correct answer and explanation is :
The correct answer is:
b. Factors that might doom a product.
Explanation:
A showstopper in business and product development refers to any significant obstacle or issue that could prevent a product from succeeding in the market. These are critical problems that can halt production, reduce consumer interest, or make a product unviable. Showstoppers can arise in different stages of product development and marketing, leading to costly failures.
Types of Showstoppers:
- Technical Issues: If a product has defects or fails to meet promised specifications, customers may reject it. For example, the Samsung Galaxy Note 7 was recalled due to battery explosions.
- Regulatory and Legal Problems: Compliance failures, patent infringements, or government regulations can halt product launches. For instance, pharmaceutical products must pass strict FDA approval before release.
- Market Rejection: A product might fail due to a lack of demand, poor customer perception, or high competition. New Coke, introduced in 1985, failed because customers preferred the original formula.
- High Production Costs: If manufacturing costs exceed projected revenue, a company might cancel the product. For example, Google’s AR glasses struggled with production costs and market readiness.
- Competitive Showstoppers: If a competitor releases a superior product first, it can make a company’s offering obsolete before it launches.
Companies conduct risk assessments to identify potential showstoppers early. Proper market research, testing, and strategic planning can help prevent these costly failures.
Here is the image representing a showstopper in a business setting. It illustrates a tense meeting where executives are analyzing a failed product launch due to critical issues like market rejection, high costs, and technical problems.