If your company makes horseshoes . . .
A product or service . . . is developed to meet or to create an end-user demand or need for it.
- How many new markets can you enter with new style of horseshoe?
- And what more can be done in the development of new horseshoes
To create demand . . . normally requires a revolutionary new product or concept that is advantageous or economically acceptable over existing, established products or services.
Look at the computer industry in its development over the last twenty years. The product improvements and developments in hardware and software are staggering. Fifteen years ago very few people would have imagined what has taken place in this industry relative to the dominance of IBM and the major component suppliers.
That is not to say IBM has lost a step either. The market is significantly larger with more home owned PC's. IBM's competitors in the PC market like Dell, the combination of HP and Compaq, Apple, and Gateway found their market shares with a combination of product innovation through development and excellent, aggressive marketing.
Today's business environment dictates . . . marketing! Now, look at Microsoft . . .
The ability to continue its dominance in the software market relies strongly in two areas:
What Microsoft did with the shift in its commitment and development of internet related software explains what product and market development is all about!
- product and market development
- capitalizing on its reputation (name and quality recognition) with excellent marketing.
Still, one must give significant credit to the role of Netscape for Microsoft's direction change. Netscape woke up a complacent giant that still had the ability to look at itself from outside and make an objective decision . . . Of course, it eventually lead to Netscape losing its status as an independent corporate entity and its browser falling well behind Microsoft's Internet Explorer in usage that eventual resulted in its demise.
And since then the development of other quality browser software including Mozilla's Firefox has kept Microsoft on its competitive toes . . . forcing it offer better versions of Internet Explorer to maintain its market share dominance with Internet Explorer . . . which has helped to establish its other internet related software programs and internet based services like Window Live.
Companies that are dominant in an industry and lose touch with what the market wants versus what they want the market to have . . . will be blindsided by innovative companies that know what marketing a new product is all about.
Please note that other software companies are doing very well offering specialized / niche internet related programs too. They same can be said for online services and retailers like Google, Yahoo, and Amazon . . . All rely, in varying degrees, on the use of free browser software. (Now what is your answer to the following . . . Does Microsoft consider its Internet Explorer a loss leader to achieve revenue elsewhere?)
If your business is floundering, it could be stale products, under performing services, the market itself and/or the inability to remain objective . . . unable to see the market from a different perspective.
FOCUS Associates can help . . . diagnose the problem(s) and prescribe a solution to curing your product, service, and/or market development ills.