PRODUCT DESIGN AND SERVICES
One product strategy is to build certain capabilities in the customization of an existing product or service family. This approach allows customers to choose product variations while driving organizational strength. An effective product strategy links product decisions to market investment, and the product life cycle, and describes the breadth of a product line. The purpose of a product decision is to develop and implement a product strategy that can meet market demand with a competitive advantage.
SELECTION OF PRODUCTS AND SERVICES
The choice of product strategy supports competitive advantage
Many choices exist in the selection, designation and design of the product. Product selection is the process of selecting a product or service to be presented to a customer or client. Product decisions are fundamental to organizational strategy and have far-reaching effects on all operations.
Product Life Cycle
Product life is divided into four sections. This phase is an introduction to growth and maturity
1. Introduction phase. In this phase, production techniques are still adapted to the market, this condition may require other expenses for research, product development, process modification and improvement, and supplier development.
2. Growth Phase. In the growth phase, product design has begun to stabilize, and effective capacity requirements forecasting is required. Additional capacity or increasing the existing capacity to accommodate increased product demand may be required.
3. Maturity Phase. When a product matures, Competitors start to emerge. Production numbers are large and innovative according to this phase. Better cost control, reduced choice and cut production lines may be effective or necessary to increase profits and market share.
4. The Decline Phase. Products that are nearing the end are usually products that are bad for investment in resources and managerial capabilities, so their production must be stopped. Unless this moribund product makes a unique contribution to the reputation of the company or its product line, or can be sold at a high price,
Value-based product analysis
Product by value analysis sorts products in descending order based on the individual dollar contribution of each product to the company. The analysis is also based on the annual dollar contribution of a product. Value-based product reports allow management to evaluate possible strategies for each product. The report also tells management which products should be eliminated and which ones have failed and does not allow any further investment in research and development or capital research. The report focuses management's attention on the strategic direction for each product.
0 Response to "PRODUCT DESIGN AND SERVICES"
Posting Komentar