Is yours a product-driven company?
Is your company’s strategy driven by the types of products you sell?
I challenge you to look into your firm and determine the real driving force.
Products are the item or service you organization offers to the market it serves, including ongoing service, support, and maintenance. Products have, at their base, a common set of distinguishing characteristics such as functionality, customer needs satisfied, size or shape, quality, etc. The products discussed here can be an individual product or a line or group of products.
Products as the Driving Force
Firms whose strategy is driven by the Products Offered hold a convincing concept that their products are the key to meeting the needs of their market. Any new products will be similar, and possibly an improvement of the current products – brakes that stop 10% faster – cameras that are smaller and “see” farther, etc.
Growth for this type of firm comes first from increased penetration in current market segments. Other options for growth are new geographies and market segments needing their products and services. The business will focus on ways to extend their product lines into these new arenas. Significant efforts will be directed at developing, producing, marketing, and delivering new products to the current customer base with the intent to gain a larger portion of their customers purchases.
This is the second in a series of posts about company strategy. The next will discuss the Market Needs as the Driving Force.
Check here for initial post of this series, “What is Driving Your Company?”
If you like the information provided here, scroll to the bottom of the page to receive my ebook “5 Stages of the Product Lifecycle”.
Originally posted 2013-11-12 06:00:20. Republished by Blog Post Promoter