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As mentioned above, the width of product mix is referred to as the total number of product lines that the company offers. A diversified product mix can target the maximum number of customers, however, such numbers of product lines requires much attention and focus as each product line targets different groups of consumers and involves individual strategy and management.
Manufacturers have long employed analogous engineering techniques to create a product line of similar products using a common factory that assembles and configures parts designed to be reused across the product line. For example, automotive manufacturers can create unique variations of one car model using a single pool of carefully designed ...
The growth–share matrix [2] (also known as the product portfolio matrix, [3] Boston Box, BCG-matrix, Boston matrix, Boston Consulting Group portfolio analysis and portfolio diagram) is a matrix used to help corporations to analyze their business units, that is, their product lines.
Below an example is given of an application of the product line engineering process, based on a real experience of Nokia. Nokia produces different types of products. Among them is a mobile phones product family, currently containing 25 to 30 new products every year.
Differences in customer profitability can arise from either differences in revenues and/or differences in costs. In other words, customer profitability depends not only on the revenue resulting from sold units of a product or service, but also on the 'back end' services provided, including marketing, distribution, and customer service. [ 1 ]
Vertical product differentiation can be measured objectively by a consumer. For example, when comparing two similar products, the quality and price can clearly be identified and ranked by the customer. If both A and B products have the same price to the consumer, then the market share for each one will be positive, according to the Hotelling ...
As business becomes more responsive to unique consumer tastes and derivative products grow to meet the unique configurations, BOM management can become unmanageable. For manufacturers, a bill of materials (BOM) is a critical product information record that lists the raw materials, assemblies, components, parts and the quantities of each needed ...
Lean product development has been claimed to produce the following results: Increase innovation ten-fold [10] Increase introduction of new products 400%-500% [10] [11] Companies such as Toyota can attribute their success to lean product development. In 2000, Toyota launched 14 new products, a larger product line than GM's entire product offering.