In today’s episode of The Startup Chat, Steli and Hiten talk about product expansion for your business.They highlight the next steps to product development and how to expand or diversify. They also review other businesses and the effects that product expansion decisions have made to their business.
Product expansion strategies, can create new opportunities, which can help to build up your business brand image, increase sales and grow your business. Being clear about your product strategy, can help your business to understand if you should diversify or modify your product range.
Tune into this week’s episode of The Startup Chat to understand how to structure product expansion within your company. Steli and Hiten, consider 2 main factors, the product and the market, while looking at the decisions that sit behind different product strategies.
Time Stamped Show Notes:
00:32 Questions around the idea of expansion.
01:03 Different strategies around product expansion.
02:23 Reasons behind product expansion.
02:48 Case study of how other businesses have used product development.
04:20 The benefits of multiple products.
06:43 The power of one brand.
07:41 The down sides of multiple products.
08:10 Building your strategy based on your market.
08:26 What the market dictates.
11:45 A success story case study.
3 Key Points:
Being able to consolidate into 1 brand name is so much more powerful.
Do you want to create features that are strongly branded or do you want to create a strong brand.
You can take the idea for that first product and repeat the process for other products.
Steli Efti: Hey, everybody, this is Steli Efti.
Hiten Shah: And this is Hiten Shah, and today, on The Startup Chat, we're going to talk about after you have a successful sort of product that's growing, what do you do next? How do you think about expansion? Do you create more features? Do you create a new product? Do you do what? I think, Steli, this comes from a question that kind of you had about multiple products and creating those. I think really the important piece here is like, "What do you do, how do you expand when you," I think a lot of people have the impulse that they want to create something else, something new, right?
Steli Efti: Yeah.
Hiten Shah: How do you expand is really the question.
Steli Efti: Yeah, I think that especially in SAS, there's been both playbooks, right? There's been the playbook of, "You build one product and you just expand that, and you make it more and more kind of a little complete suite, any maybe you expand it to become a platform, right, and then eventually an ecosystem," right. You start with one very specific thing you're doing, and just adding more and more and more features and you're making it a bigger and bigger thing, or, slash, and, there have been companies or have been strategies where a SAS company will come up with product A for market A, and then see some success in it, and then launch product B to sell to market A, and then product C, and these products might be somewhat related, but they're distinct products that people can purchase individually. They might have different names, they have different landing pages, they have different teams working on them, and so I've always been curious to hear like what decision making goes into that. There's famously some companies in the past few years, might be one of the most prominent ones, that went from a, starting with a single product, expanding to a product suite, and then going back to killing off a ton of these products and going back to like the original product or the biggest, the flagship product, and just dedicating themselves to one product again.