In a world that possesses a previously unimaginable variety of products and services, there is always a danger of become replaceable, which typically leads providers of those products and services into bitter and ruinous price wars. There is only so much we can learn from this "automatism". Interchangeability and price wars are the result of imitation and “fear of the future”. In other words, many companies forget one fundamental thing when they find themselves in phases of unlimited potential for growth. Products and services are only valuable for customers when they provide unique a benefit. If they do not do that, they become bulk commodities and as such lose their value. We are speaking here about differentiation – being truly different. You may be thinking that there just aren’t enough notable ways to do this, and that all of your attempts to be different have failed to achieve the desired results. Admittedly, to be truly unique is not easy. But we believe there is no reason to fall into the realm of interchangeability - regardless of the product category. Anything can be different if one seriously considers the future “desires” of customers.
How else would Apple have managed to change the logic of multiple industries at once? How would Danone have been able to revolutionize the yoghurt market by focusing on "health"? How has Siemens inspired customers for decades with its extraordinary engineering feats? How has Ischgl managed to make itself into a mecca for winter tourism? How did Geox get to number 2 worldwide in the leisure shoes market with its “odorless” shoes?
All of these companies have one thing in common: They possess a tangible reason why their products and services are “sellable”. The reason is “sustainability” and it is something that is consistently derived from the defined positioning of the company. That makes the difference.
Core thoughts for product and services logic
Thinking in terms of business logic does not mean the isolated optimization of a product range. It is more about creating a unique product environment to accompany the positioning strategy that has been developed. Creating a unique product universe means taking the future into consideration. Only those who have been able to anticipate the “desires” of the future will be able to surprise and inspire their customers.
The depth and breadth of a product range in a specific sector can never be reference points for the structure of a company’s product logic. The strategic role defines the appropriate level of complexity, which is reflected, among other things, in the type and scope of the products. A lack or a surplus of complexity diminishes value. The appropriate scope of product variety can only be assessed from the perspective of strategy.