Product Strategy Flashcards
(37 cards)
What is the purpose of a product strategy?
To both focus and integrate team in order to achieve delegation
Why do firms need product strategies?
- To focus teams who are involved in the NPD
What is included in a product strategy?
- Mission
- Objectives
- Platforms
- Portfolio and more!
How many types of product strategies are there?
Deschamps & Nayak, 1995
- 5
What are the 5 types of product strategy?
Deschamps & Nayak, 1995
- Product proliferation
- Value
- Design (outward appearance)
- Innovation
- Service
Explain Deschamps & Nayaks 1995 Product Proliferation product strategy type:
Deschamp & Nayak, 1995 Product proliferation - Covers the entire market - Launch many new products - Market response to the product determines their support of a product
Explain Deschamps & Nayaks 1995 Value product strategy type:
Deschamp & Nayak, 1995
Value
- Creates products of a high quality and emphasis on reliability
- Continually improves
Explain Deschamps & Nayaks 1995 Design (Outward Appearance) product strategy type:
Deschamp & Nayak, 1995
Appearance
- All about style, the aesthetics, touch and ease of use
Explain Deschamps & Nayaks 1995 Innovation product strategy type:
Deschamp & Nayak, 1995
Innovation
- Typically a market pioneer
- Specialises in technological and market innovations
Explain Deschamps & Nayaks 1995 Service product strategy type:
Deschamp & Nayak, 1995
Service
- They’re at the forefront of service development by being excellent at customer relations/service and distribution
How many types of differentiation aside from product are there?
Hooley et al, 2008
- 5
How many ways can you differentiate a product?
Garvin, 1987
- 8
Discuss the ways in which you can differentiate a product:
Garvin, 1987
- Form: size, shape
- Features: Things aside from the basic function
- Performance quality
- Conformance quality: Product identical and meets the promised performance level
- Durability: Expected life
- Reliability: Probability of malfunction/failure
- Repairability: Ease/cost of repair
- Style: Aesthetics, is it difficult to copy
What is a product portfolio?
The range of items sold by a business
Why is a product portfolio important to a firm?
- Key to survival
- Develops a range of products
- Obsolescence becomes less of an issue
What is a way in which we can analyse a product portfolio of a firm?
Use of the:
Boston Consulting Group Matrix
What elements are there in the Boston Consulting Group Matrix?
- Question Mark (High growth & low share)
- Dogs (Low share & high growth)
- Star (High share & growth)
- Cash Cow (High share & low growth)
Outline the Question Mark of the Boston Consulting Group Matrixes:
- Build these products selectively
- Focus on a defendable niche
- Harvest the remainder
Outline the Dog of the Boston Consulting Group Matrixes:
- Should either harvest or divest
- Focus on a defendable niche
Outline the Star of the Boston Consulting Group Matrixes:
- High share & growth
- Invest in it to maintain
- Leadership in market
Outline the Cash Cow of the Boston Consulting Group Matrixes:
- Hold sales/share
- Defend position in the market
- Use excess cash to support the NPD
Why is innovation important?
Freeman, 1982
- Not to innovate is to die
Therefore it is key to survival
How many organisation characteristics are there that firms can show that facilitate innovation?
Trott, 2008
- 9
What are the characteristics that firms can show that facilitate innovation?
Trott, 2005
- Growth orientation
- Vigilance
- Commitment to technology
- Acceptance of risks
- Cross-functional cooperation
- Receptivity
- Slack
- Adaptability
- Diverse range of skills
