Parking Space Navigator

The Parking Space Navigator is a convenient add-on for mobile devices and navigation systems that finds parking spaces for you. You will no longer have to drive around the block or continuously drive through row after row of parking spaces, looking for the ideal spot. This product will automatically locate an empty space for you. You won't need to worry about other drivers with the same device competing for the same spots with you either! All devices coordinate via satellite and parking spaces are allotted on a first come, first serve basis. The product would be available via electronic distribution, available to download to smart phones, laptops, GPS navigation systems, or other portable devices with GPS capability. The initial download of the application would have a flat cost, plus a monthly fee for use; discounts would be available for those that purchase an entire year subscription; special deals would also be available to those who purchase new GPS units or cell phones.

1.) What is the likely demand for the product?
This product is highly beneficial to those living and/or working in busy cities and towns and also for those who want to find the closest parking space at a shopping mall or department store. This product would have enormous demand, especially from those who need to park and get to work quickly, tired workers trying to get home for the day to relax, eager shoppers trying to get the closest spot or to get in the door quickly to pick up a hot item, and even college students on a busy campus trying to get to class quickly.

2.) What impact would the new product probably have on total sales, profits, market share, and return on investment?
As this product is an innovation new to the market, its market share would be 100% until other companies develop a model of their own. Total sales for the company would be significantly boosted; profits would also be at a maximum because there is little cost to distribute the product and minimal maintenance necessary to keep the system running. Return on investment would also be high, as its development costs and satellite launching costs would be quickly surpassed because of high demand.

3.) How would the introduction of the product affect existing products? Would the new product cannibalize existing products?
This product would likely increase the demand for existing products, such as GPS units and smart phones, as they would have yet another convenient use. There are no products on the market that would be cannibalized.

4.) Would current customers benefit from the product?
As a new company, our customer base would be built from scratch, though for companies that offer our product as an addition to theirs, their existing customers would benefits highly from our product.

5.) Would the product enhance the image of the company's overall product mix?
This product would be the first product in the company's line. The company could produce its own GPS units in the future as a way to extend the mix.

6.) Would the new product affect current employees in any way? Would it lead to increasing or reducing the size of the workforce?
The company would have very few employees, as the product has electronic distribution and little maintenance requirements.

7.) What new facilities, if any, would be needed?
The only "facility" that would be needed is a satellite. A business office would not necessarily be needed, as the company could easily be run from a home office.

8.) How might competitors respond?
There would be no competitors at first as the product idea is new to the market. Many competitors would likely spring up over the years as they see the product doing well; the competitors would likely be GPS manufacturers and cell phone and internet providers.

9.) What is the risk of failure? Is the company willing to take the risk?
The risk of failure is minimal, as the product would offer a significant usefulness to consumers.