Competition
Product adaptation is also an important strategy for dealing with competitive threats. If competitors introduce new products that outperform your offering, they may take market share from you. By analyzing competitors’ product specifications, you can identify aspects of your own products for improvement. You also can respond quickly to competitive threats, rather than taking the time to develop new products.
Priorities
To set priorities for product adaptation, you must balance customer and market needs with the cost of development and the likely return on your investment. The communication company France Telecom has developed a strategy it calls “once but many.” The company uses this strategy to quickly customize existing products for different markets, helping reduce development costs and speed up the introduction of new products.