Chapter 4

DEVELOPING PARTNERSHIPS

USING OUTSIDE RESOURCES FOR PRODUCT DEVELOPMENT

First published: 29 July 2017

Summary

This chapter illustrates numerous ways in which a variety of food companies have utilized outside resources to expand their range and reach of product offerings. This chapter will provide specific examples of when and why companies elect to use independent contractors for product development. The examples are grouped into two categories: White space opportunities and Choice opportunities. Many years ago, the food company has no internal research and development department. They have lack of experience in food product development and lack of specific technical expertise. Outside resources provide an understanding of ingredients and their functionality as technical expertise is provided to entrepreneurial firms. Adapting technologies from other markets or using new technologies allows a company to tap into technologies originating in foreign markets. Contract product development companies provide entrepreneurs with technical expertise, supplier and manufacturing resources for product commercialization.

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