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Frequent New Product Introductions: Meditech introduces, on average, one new product per month. This rapid pace leads to shorter product life cycles and reduces the
Frequent New Product Introductions: Meditech introduces, on average, one new product per month. This rapid pace leads to shorter product life cycles and reduces the time available for products to gain traction in the market.
Upgrade Emphasis: Most new products are upgrades of existing ones, further shortening the life cycle of products and potentially contributing to customer dissatisfaction.
Customer Focus: Meditech's primary customers, Material Managers, prioritize cost and delivery schedules over innovative product features. This means that the company's focus on innovation might not align well with customer preferences.
Cognitive Dissonance: While no major problems arise from an assembly line perspective, customers might experience cognitive dissonance due to frequent changes and upgrades in products.
Lack of Demand Dynamics Understanding: Meditech fails to understand the demand dynamics throughout a product's lifecycle, leading to inaccurate forecasts and ineffective product diffusion.
Long Lead Times: The lead time for each new product launch is high, ranging from to weeks, excluding design phase lead time.
Supply Chain Issues: The frequent launches have led to supply side shortages, delayed deliveries, low customer service levels, and inaccurate forecasts. Additionally, the wide product portfolio results in reliance on suppliers with lead times of weeks, making JustInTime JIT practices difficult to implement effectively
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