Partners are taking defensive approach with the objective to protect their business to tackle with strong competition.
This might be important for companies that have built their business on a single product. Declining market share or revenue, e-commerce is already threatening the survival of traditional business. Alternatively, companies are taking an offensive approach where a strong market opportunity can be seen but can’t take advantage of it with existing products.
Sandeep Jain of Microland Computers said,” I was already doing business with Dell, HP, Samsung, etc. but as per current market scenario diversification in products can attract the customers. Now I have taken distributorship for Micromax and Intel for Jabalpur region. As I am targeting turnover of 100 crores this financial year which is touching the aimed turnover due to diversification of products availability.”
There are number of ways one can approach in product diversification. One can modify existing products so that the new version appeals different to group of customers.
Varinder Singh of Datavision explained, “Experimenting always gives creation to something new and I felt it while doing this with my business line. We specialize in online/offline range of UPS systems and other power conditioning equipments i.e. Digital Invertors, Digital and Analog Transformers for A.C., Refrigerator and Mainline and Servo Stabilizers. This resulted in that we have sales offices at New Delhi, Ludhiana and Amritsar and we are privileged to have extensive dealer network across North India.
Sandeep Sethi of Vast Computers conveyed, “Before committing resources to product diversification, carry out research to ensure that you understand the needs of the market instead just going for it like that. Vast computers was earlier into selling of tabs, smart phones, laptops, etc but now entered into providing complete solutions like security, etc. which gave a positive turn to business.”
Large numbers of partners are adding on their services and products to their existing portfolio which can aim to target a new group of customers.