Product platforms and market segmentation: Implications for profits and market share

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Consumer requirements are becoming increasingly more diverse and placing greater demands on businesses as a result. Ongoing market volatility heightens what is already a considerable challenge. Satisfying consumer desire for greater product variety means that firms need to embrace at least some aspects of lean production. One example is the manufacture of different products using the same platform. Savings in terms of both costs and assembly time are regularly achieved when platforms are utilized in this way. On the negative side, there is a substantial risk that products from the same platform will compete against each other for market share. Many observers believe that such cannibalization is inevitable.

Practical implications

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Citation

(2017), "Product platforms and market segmentation: Implications for profits and market share", Strategic Direction, Vol. 33 No. 4, pp. 28-31. https://doi.org/10.1108/SD-01-2017-0012