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WDC » Topics » If we fail to successfully manage our new product development or new market expansion, or if we fail to anticipate the issues associated with such development or expansion, our business may suffer.

These excerpts taken from the WDC 10-K filed Aug 20, 2008.
If we fail to successfully manage our new product development or new market expansion, or if we fail to anticipate the issues associated with such development or expansion, our business may suffer.
 
While we continue to develop new products and look to expand into other hard drive markets, the success of our new product introductions is dependent on a number of factors, including our ability to anticipate and manage a variety of issues associated with these new products and new markets, such as:
 
  •  difficulties faced in manufacturing ramp;
 
  •  market acceptance;
 
  •  effective management of inventory levels in line with anticipated product demand; and
 
  •  quality problems or other defects in the early stages of new product introduction that were not anticipated in the design of those products.


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Further, we need to identify how any of the hard drive markets into which we are expanding may have different characteristics from the markets in which we currently exist and properly address these differences. These characteristics may include:
 
  •  demand volume growth rates;
 
  •  demand seasonality;
 
  •  product generation development rates;
 
  •  customer concentrations;
 
  •  warranty expectations and product return policies; and
 
  •  cost, performance and compatibility requirements.
 
Our business may suffer if we fail to successfully anticipate and manage these issues associated with our product development and market expansion. For example, our branded products are designed to attach to and interoperate with a wide variety of PC and CE devices and therefore their functionality is reliant on the manufacturer of such devices, or the associated operating systems, enabling the manufacturer’s devices to operate with our branded products. If our branded products are not compatible with a wide variety of devices, or if device manufacturers design their devices so that our branded products cannot operate with them, and we cannot quickly and efficiently adapt our branded products to address these compatibility issues, our business could suffer.
 
If we
fail to successfully manage our new product development or new
market expansion, or if we fail to anticipate the issues
associated with such development or expansion, our business may
suffer.


 



While we continue to develop new products and look to expand
into other hard drive markets, the success of our new product
introductions is dependent on a number of factors, including our
ability to anticipate and manage a variety of issues associated
with these new products and new markets, such as:


 














































  • 
difficulties faced in manufacturing ramp;
 
  • 
market acceptance;
 
  • 
effective management of inventory levels in line with
anticipated product demand; and
 
  • 
quality problems or other defects in the early stages of new
product introduction that were not anticipated in the design of
those products.





17




Table of Contents





 



Further, we need to identify how any of the hard drive markets
into which we are expanding may have different characteristics
from the markets in which we currently exist and properly
address these differences. These characteristics may include:


 


































































  • 
demand volume growth rates;
 
  • 
demand seasonality;
 
  • 
product generation development rates;
 
  • 
customer concentrations;
 
  • 
warranty expectations and product return policies; and
 
  • 
cost, performance and compatibility requirements.


 



Our business may suffer if we fail to successfully anticipate
and manage these issues associated with our product development
and market expansion. For example, our branded products are
designed to attach to and interoperate with a wide variety of PC
and CE devices and therefore their functionality is reliant on
the manufacturer of such devices, or the associated operating
systems, enabling the manufacturer’s devices to operate
with our branded products. If our branded products are not
compatible with a wide variety of devices, or if device
manufacturers design their devices so that our branded products
cannot operate with them, and we cannot quickly and efficiently
adapt our branded products to address these compatibility
issues, our business could suffer.


 




EXCERPTS ON THIS PAGE:

10-K (2 sections)
Aug 20, 2008

RELATED TOPICS for WDC:

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