In order to ensure maximum benefits, many companies apply effective strategies and tactics in the management of innovation in products and services. They provide not only a maximum of benefits but also minimizing costs and risks. Product strategy specify in which markets, technologies and products to invest, as well make decision, based on what are the best strategies for market entry.
Product strategy therefore aims at setting guidelines for decision-making by executives in terms of effective allocation of the resources necessary to create products and markets that will ensure desired competitive position of company, and that will enable survival and development in a changing environment.
Types of product strategy
The strategy of maintaining the competitiveness of the product offering aims to create products that is just as good as the competition, and even better. This strategy requires a continuous focus on all the characteristics of the product and mainly on its quality. The relative improvement of quality has a decisive influence on the company's market share. Two more important factors having an impact on the participation of the company in the market is an extension of the activities related to the new product, as well as increasing the amount of expenditure on advertising and promotion. Strategy of full product range involves providing consumers with full set of products needed.
The strategy of complementing the product line is designed to fill in gaps or deficiencies of certain products in the offering of the company.
Product line cleanup strategy is aimed at the removal of company products that no longer meet the expectations of customers, and therefore does not produce profits and even cause losses.
- Stark, J. (2015). Product lifecycle management (pp. 1-29). Springer International Publishing.