Strategies for managing mature products

Abstract

Purpose

Two leading technology companies, Intel and H‐P, illustrate both the challenges that managing mature successful products pose and some of the responses companies need to consider.

Design/methodology/approach

A major consulting firm studied public data about two firms and consulted with their senior managers.

Findings

Both Intel and H‐P have recognized that the marketplace and the evolving value requirements of customers and potential customers should drive every decision a business makes about what activities to focus on; what innovations to add to products; what to outsource; and when and how to change.

Research limitations/implications

More studies are needed on selecting the right R&D strategy and better execution of the product life cycle management processes to speed up development.

Practical implications

The Intel and H‐P cases suggest that being competitive is about meeting the needs of customers better than your competition; staying competitive is about learning new tricks sooner and better than your competition. Selecting the right R&D strategy and better execution of the product life cycle management processes to speed up development are critical in rapidly changing markets.

Originality/value

This article provides a wake up call to any manager who assumes that a firm can innovate its way to sustained competitive advantage. Commoditization can happen rapidly, even on the cutting edge of high tech.

Citation

Hutt, K. and Davidson, A. (2005), "Strategies for managing mature products", Strategy & Leadership, Vol. 33 No. 4, pp. 51-52. https://doi.org/10.1108/10878570510608059