What Is Product Diversification?
Product diversification refers to the simultaneous production of one or two leading products. Some other kinds of products have been developed. Implement multi-angle management.
product diversification
Right!
- Product diversification has three different forms according to its development direction: [1]
- Product diversification can be divided into two categories: external product diversification and internal product diversification. There are two types of external product diversification. The first type is useful and diversified by customers. The second category is unwanted and useless diversification by customers. Such diversification will only increase the consumer's consumption burden and should be eliminated. There are also two types of product internal diversification. The first type is necessary and useful, including parts, tools, fixtures, raw materials and process methods necessary to achieve the first type of external diversification. , Excessive parts, tools, fixtures, raw materials, and craft types. [2]
- 1. The impact of different manufacturing models on product diversification costs [2]
- 1. Design cost control technology [2]
- In order to be competitive and profitable in providing diversified products, on the one hand, companies should review the degree of external diversification of products from the perspective of customers, take full account of customer consumption trends, demand characteristics, functional requirements and feedback, and confirm and eliminate what customers consider useless. Diversified products on the surface or superficially, and strive to carry out effective and useful diversification; on the other hand, understand the sales prospects, manufacturing costs, profit margins, and processing flexibility of the company to minimize internal diversification costs! The costs related to processing preparation, the use of equipment and plant space, the daily cost of materials, etc., and reduce the cost of product customization and configuration, so as to rationalize the degree of product diversification. [2]