Recently one of my readers asked me this fascinating question on lifelong product producers’ business growth model–
“How do companies that make a product for a lifetime stay in business?”
Let me try and explain some basic business concepts that will answer your question in simple language.
- At the heart of any business lies its business strategy. Strategy is not static; unchanging, that is created once. Strategy is the engine that drives a company using the power of the business model. Strategies are updated and modified, and new strategies are developed as the business ecosystem changes. The business model is implemented with the help of an organization. People run the organization.
- The market has people who are consumers of products. People earn and acquire wealth. Wealth is used to buy goods and services.
- Consumers access goods and services in marketplaces. The marketplace can be electronic and traditional. Consumer access is facilitated with the help of advertising.
- Advertising helps bring the product and service to newer markets and consumers. New consumers are added as the reach and access increase with effective customer outreach.
- There are close to 8 billion consumers in the world. The catchment is still huge. You can theoretically stay in business until all the 8 billion people have acquired goods or services that will last them for a lifetime. At that stage, business growth will theoretically occur at the pace of the global population.
Consumers and businesses alike both are looking at superior return on investment. Consumers want products of exceptional quality at the lowest possible price. They look at available products, evaluate their suitability, and purchase what works best for them. Each consumer will purchase when the buy price satisfies the need and requirement he has set out. For that customer, the cost and quality that is, in his mind, the optimal and the best available price.
Businesses offering lifelong lasting products understand customers’ psyches and provide products and services at a price and quality that the customer finds compelling. The business growth model could offer a lifelong service at a competitive price, earning them additional revenues and gaining customer loyalty.
We know that loyal customers tend to become brand ambassadors of the company. It helps strengthen the brand, market the product and acquire more and more customers. Combining strategy, operations, business excellence, and marketing helps lifelong product producers companies grow.