The Dumbest Words in Business are ‘Full Service’ or ‘Full Product Line’.
I keep seeing new products and services that beg the question as to why the firm is adding them. I have to say that I define Strategy as being based on Purpose, so a firm might question if a new product is based on their purpose. Even if the answer is yes, that isn’t an excuse for firms to keep adding products in the hopes that the next one will be highly profitable. In fact, the search for new products could lead to lower profits, considering that new variations, flavours, features, etc. may well cannibalise what you already sell. In the case of products, it too may be cause for increase stock holdings and many new inefficiencies.
Just because you can add products or services doesn’t mean you should.
Corporate held Emotional Intelligence (ChEI) is the key to successfully implementing strategy and therefore the key to success. ChEI demands objective self-assessment of the firm and its strengths and weaknesses. It requires brutal self-assessment of every tool the firm uses to achieve its goals; some of those tools are products and services on offer. An increase in services or products will impact on other elements of the firm, for example the sales and marketing resources and budget. Ignoring the whole concept of Design Thinking: a firm should also determine if the additional products will make it harder for the firm to focus, to maintain a good company culture, to maintain disciplines and to execute a predetermined, coherent strategic plan.