Strategic Planning in the Small Business

Unit 3

Content

Process

lished primary

markets.

Product development

stresses variations

of

improvements

in the firms

primary pro­

ducts.

In this case, current

customers are

introduced to the

new and different

pro­

ducts

in the hope that

the positive image

customers have of

existing products can

be

transferred

to the new products.

Note that existing

products are

not

changed, rather, growth

comes from

the

same customers

purchasing both

the exist­

ing products and

the new products.

A

key advantage of

developmental pos­

tures

is that the business

maintains a high

degree

of consistency

and stability while

undergoing

change and development

for

growth.

Care must

be used when making

such a

strategic

change. The business

must be

sure

that in addressing

new markets, the

needs of older

established markets

are not

neglected.

A

developmental posture

does add a fair

amount

of additional

planning complexity.

o The

product innovation

posture

Initially,

one may question

the distinction

between product development

and innova­

tion.

Product development

seeks product

varia­

tions and improvements,

but involves

no

overriding change

in the fundamental

product.

Product
innovation
seeks a novel altera­

tion
of the existing product
so as to create

a basic and significant
change in the
pro­

duct.

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