product life cycle
The strategy that my company will emphasis on is differentiation, mainly on the product life cycle. I believe differentiation is the best choice of strategy since the product will be unique and have a long life cycle. In my opinion, broad differentiator strategy will be a risky proposition since it involves designing products of a high and low segment and charging a premium price. I think that there will be a biasness. Thus I prefer to use a strategy where products are designed based on clients requirements and charging based on the specification. Product differentiation is the making product or service that has unique features and relevant to customers compared to the competitors’ products. Thus, differentiation will give my product a competitive advantage in the market throughout the eight-year lifecycle. Besides, differentiation strategy will keep me on my toes to research more and to design my product at its best which will be useful for practice in simulation.
The immediate step to focus on to realize this differentiation strategy will be to introduce the products in the high and low-tech segments. At this juncture, the Research and Development team have a duty and responsibility of ensuring that the products are of high quality and the meet the requirements of the customers while still observing standards for long-term reliability and quality. The aim is to produce products that are outstanding in the market. Besides, the Research and Development team need to be keen on researching new updates to keep the products up to date and unique in the market. Since I aim at producing unique products which might be above the average price, to increase client awareness and accessibility of the product; the marketing department team will have to emphasize the high quality and durability of the product. This means the marketing budget will be quite high, and early financing may help reduce the financial burden in marketing. But marketing is vital to increase awareness and appeal to clients about the product.
Production department team has a significant role in ensuring that production is directly proportional to the clients’ demand. My company aim at providing that there are no delays in the production and delivery of products to clients. Financial team has the responsibility of making sure that the company achieves its success and ensuring at all time the company debt is quite low. The financial team will carefully plan, organize, audit, and account for the company finances. My company will offer stocks to interested stakeholders, and the capital from stocks and operational income will help increase capital which will further the company’s goals. Retaining stakeholders will give the company a competitive advantage, and thus, dividends will be issued annually.
The short-term focus for differentiation strategy is to have an effective market penetration. Having an effective market penetration will require proper marketing through ensuring transparency and honesty about the company and emphasizing on the quality of the product. Through effective marketing, the products will have a competitive advantage in the market, which will increase sales. This, in turn, will raise the company’s capital for further investments, production, and more dividends for our stakeholders. The longer-term goal is to focus on the creation of quality and long lifecycle products. This will involve the Research and development team always being on the lookout of any advances in technology. Keeping in mind that the products will be designed based on client specification, one thing has to be standard, and that is quality. Also, the Research and Development team have to be innovative on the designs and ensure the products can maintain a long life cycle.