Abstract:
Dairy is one of New Zealand’s most important industries and largest export earners. The dairy industry is a critical part of the New Zealand economy and a tool for sustained growth. The continuously changing nature of the global dairy products industry has an impact on a company’s product development pathway, and understanding the obstacles and pathways to success is crucial. This environment is especially important for New Zealand companies providing innovative products to the world. Product innovations in the global dairy industry are increasingly vast and yield significantly crowded competition. However, the pathways to their commercial success are not clear. The main objective of this research project was to understand the frequent pathways to commercialising a product innovation in the global dairy industry. To examine these pathways, the research questions were: • What are the characteristics of innovation success or failure in dairy innovation? • What are the dilemmas and obstacles of innovation? • What are the pathways and strategies used to overcome these dilemmas and obstacles? • What are the outcomes for the company involved in the product commercialisation? The main findings of this research indicate that the chosen pathway is dependent on company size. Large companies choose to go down the vertical integration route while SMEs and start-ups opt for the co-operative strategy. More often, large companies enter the mass commodities market while SMEs enter the differentiated specialties market. Furthermore, important characteristics of success include timing of product launch, strategic relationships, and ongoing innovation and product expansion. Success was independent of product characteristics. Frequent problems include the management of different time horizons, regulatory affairs, and market conditions. Crucial stages of success identified were test-market launch and post market surveillance. These two stages were where most acquisitions occurred. However, companies rarely exit after a successful innovation, but rather continue innovating and expand their product line through organic expansion. This research has been conducted in the hopes that it will contribute to knowledge with insights into global company case studies, particularly focusing on dairy. What is known about dairy commercialisation pathways over the last ten years will be further analysed taking a global perspective extended from existing literature.