By Mikesh Raithatha
Challenging Your Product or Service Offerings for Success in 2024
Part of an effective business strategy is understanding your market, where you will play and how you will win in that market. That is, who a business’s target customers are, its value proposition and its unique key capabilities to deliver.
We’ve previously covered this in relation to deciding which new business opportunities to go after, and it is also very relevant when reviewing and deciding which products and services to offer that target market.
A new challenge facing many business owners, is just how quickly so many aspects of the business environment are changing. One effect of this is that there are new products and services coming to market all the time and new possibilities for the products and services businesses can offer. Consider the rapid development of AI as an example and the proliferation of new products and services that have come along with this rapidly developing technology.
With this constant change, it is equally important to challenge your product or service strategy. When looking at what products or services you will offer as part of your game plan for success in 2024, consider the same. What will be the right offering in line with your strategic plan of where to play and how to win and in line with your unique competitive advantage? What are the needs and wants of your target market, and what are your unique key capabilities and strengths to deliver?
Product Portfolio Analysis
We use the Boston Consulting matrix to help focus on the right products or services to deliver, as part of a Product Portfolio Analysis.
The matrix categorises products / services based on;
- The market attractiveness of that product or service
- The business strength to be able to easily and profitably deliver that product or service.
This categorisation will result in products / services being categorised as follows:
This analysis can help you answer the question, “What should we focus on next?” or “What is our product strategy?”. It’s particularly helpful if you have an evolving range of products or services, such as software, professional services or retail.
Businesses need to get clear on the answers to these questions and understand their sustainable competitive advantage in relation to where they will play and what products and services they will offer for success in 2024. These important strategic questions are what business owners and managers should continue to ask every month, quarter, and year, especially if they want to grow a sustainable, profitable business.
If you have any questions about this article or would like to speak to one of our advisors, please do not hesitate to contact us or call our office on (08) 6212 7200.