[Notes] HBR Marketing Myopia

• Growth of company slowed , even though market has no satuaration -> Failure of Managment
• What is bussiness and what is product of bussiness
  • E.g. Railways is in bussiness of transportation with rail as product
• concept refers to shortsightedness of businesses that focus on their products rather than the needs of their customers.
• failure of management to recognize the broader needs of the market and to adapt to changing customer demands

• lead to a decline in growth and profitability as companies fail to innovate and meet the changing needs of their customers.

• Myths which lead to risk of obsolescence
  • Ever expanding population will ensure growth ( Increase efficiency of product, rather than value delivered by product)
  • No Competitive substitute for our industry’s major product ( No rival )
  • Mass production at less unit price is key
  • Techical Research and Dev leads to growth ( Breakthourgh in products rather than consumer needs)
• growth industry - No such thing!
  • only companies organized and operated to create and capitalize on growth opportunities

Takeaways

• Build product around consumer, invent technology over consumer requirement. Otherway round is foul way.
• Product is appreciated if it fullfills consumer needs
• Reducing Unit costs of product until consumer needs are fullfilled is risky