Why is it difficult for a service company such as a bank to develop new products that have lasting success?
Answer:
One word... Competition!! When you provide a service, your survival is based on customers. When you are successful, competition will arise. Then you come up with gimics (or as you say new products) to attract new customers and keep old ones. Then the competition comes up with newer ones. It's a vicious cycle.
Back to your question..
These new products aren't designed for lasting success. They are merely marketing ploys! That's why they don't last, because they are constantly trying to one up the competition. They keep shifting their focus to something new!
I hope everything I said makes sense!
because (a) not enough people in the company actually believe the new product will be a success or (b) it's possible that when making the new product, everyone gets so excited about it that they overlook important details during the development stages of the product's creation or (c) poor advertising or (d) customers are uncomfortable with change or (e) the new product does not meet the needs of the average customer.
Competition is just too keen and monopolies given will not last long.
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