Product Development vs Diversification

Product Development vs Diversification

Today, we will talk about product development vs diversification. Also, we will talk about how you can implement both of these. So, read on below.

Product Development vs Diversification

Product development is different fromĀ product diversification. For one, development refers to a company’s ability to develop new products. On the other hand, diversification is the process of a company producing new goods and services.

Diversification is a strategy that many companies have adopted in the past. This is because the more goods and services they offer, the more market share they can get. On the other hand, product development dictates that you should focus on one or two products to achieve your goals.

Here are some of the different ways to implement product development vs diversification:

  • Product Development. You can develop a new product and focus all your efforts on it. However, if you do this, you will need to put aside all the other projects to carry out this task. Also, you need to make sure that your new product will be able to serve as a supplement to your existing products. 
  • Product Diversification. You can do this by offering a new service or selling a new product line. This way, you will be able to increase your business without having to invest too much capital in developing a new product and its marketing plan. However, there are downsides to this method as well. First off, it’s very hard for a business owner to manufacture different kinds of products at once. Not unless it has an assembly line that can easily produce different kinds of goods at once. Second off, it’s very hard for a business owner to market different kinds of products at once. Not unless they have enough employees who are well-versed with each kind of product that the company sells.

As you can see, both types of strategies can be good depending on what business you are running.

Product Development and Diversification

How, then, can you benefit from both strategies? If you want to combine the two, you will need to make sure that you can manage your company’s resources effectively. For example, you can split your staff into two groups. 

One group will concentrate on product development while the other group will concentrate on product diversification. This way, you will be able to maximize your resources and market share as well.

Another way to combine the two strategies is by producing a product that can be used in many different ways. For example, you can make a virtual reality helmet. This way, you will be able to make use of the helmets for both your development and diversification strategies. If you want to maximize your profits, all you need to do is to offer your products for rent. 

Conclusion

As you can see, you must be able to decide on what strategy you want to go with. This is because both product development vs diversification come with their advantages and disadvantages. However, if you want to be successful, you need to be able to use both of these strategies. So, take some time off and think about how you can benefit from both of these strategies. 

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *

Who Is Responsible for Product Development Previous post Who Is Responsible for Product Development?
Product Development in Supply Chain Management Next post Product Development in Supply Chain Management