product strategy

product strategy

a firm's policy on the range of PRODUCTS which it supplies. Product strategy involves the periodic updating and modification of the firm's existing products or brands (see PRODUCT RANGE); the introduction of NEW PRODUCTS; and the phasing out of old products whose sales are declining, in order to release production and marketing resources which can be devoted to newer, more active products.

Technological innovation results in new products, new cost-reducing production technologies and new materials. Some innovations can serve to improve existing products or reduce their production costs and so prolong their lives. However, many such technological changes serve to limit the lives of products, shortening the PRODUCT LIFE CYCLE and speeding the onset of decline as new products supersede existing products. Furthermore, rapid changes in consumer tastes may render a particular product obsolete after only a short time, as with, for example, fashion products. Consequently a company's product development policy needs to maintain a constant stream of new products over time if it is to succeed in meeting its growth and profitability goals. Product range strategy should provide for launching new products and deleting old ones so as to avoid having a disproportionate number of products at any one stage of their lives. Indeed firms may deliberately follow a strategy of planned obsolescence, bringing out a continuous stream of new products as a means of increasing their total sales by inducing customers to replace products more frequently. See PRODUCT MODIFICATION, PRODUCT RATIONALIZATION, NEW-PRODUCT DEVELOPMENT.

References in periodicals archive ?
M2 EQUITYBITES-August 29, 2011-QlikTech names Anthony Deighton as CTO and Jonas Nachmanson as chief product strategy officer to align R&D and product strategy(C)2011 M2 COMMUNICATIONS http://www.
The portfolio conversion plan maps the changes and how the corporate product strategy goals will be achieved.
Product Strategy for High-Technology Companies: Accelerating Your Business to Web Speed; 2nd Ed.
com/research/hg5s77/apples_product_st) has announced the addition of the "Apple's Product Strategy and Its implications for the New iPad Launch and Subsequent Industry Development" report to their offering.
Appian's Vice President of Product Strategy Michael Beckley, will also host a session focused on exploring the key success factors of BPM and moderate a panel of customers and partners who will share their experience with BPM solutions.
The vendor accomplished this using a product strategy that relies on a heavy dose of internal development and quick integration of acquired technology.
Tom will lead EED's product strategy from the company's headquarters in Kirkland, WA.
Partially offsetting these positives is the execution risk derived from Max Re's shift in product strategy, an overall higher investment risk strategy compared to the industry and peers and uncertainty surrounding a Securities and Exchange Commission (SEC) inquiry related to the company's recent restatement.
NEW YORK -- Paladyne Systems, a leading provider of alternative investment solutions, today announced the appointment of veteran financial software product executives Jim Lenz, as Vice President of Product Strategy, and Ayman Sakr, Vice President of Client Services.
Fontaine revealed the company's product strategy to meet the needs of worldwide mobile/portable TV manufacturers for future radio frequency (RF) electronics.
Papandreadis as Director of Product Strategy and Management.

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