Good Product and Good Business Model

Welcome, let’s start with the post “Good Product and Good Business Model” from the world of product management.

Business Model

A business model is a company’s core strategy for profitably doing business. Models generally include information like products or services the business plans to sell, target markets, and any anticipated expenses.

There have been countless good products that couldn’t sustain a business. It is not enough just to develop a good product. In a product company, the product needs to sustain the business. You need both to be successful. The quality of the product isn’t enough. If a product can’t fuel a business then its quality will disappear.

Is the product a good solution looking for a problem? If yes, beware. Beware of small & rare problems.

Alignment

A good product must be in support of, and aligned with, the company’s business model too. Sometimes this can be difficult. As the company grows, so do the chances for misalignment across the organization. You must then determine how you will earn revenue from selling your product while working with the organization.

Understand how your company can deliver value to your target market, and how you will charge for that created value. In principle, a business model does not matter to customers; it is important to the company and the organization of its business.

A good product creates value. A good business model illustrates the capabilities and resources required to create, market, and deliver a good product, and to generate profitable, sustainable revenue streams.

A viable business model is a key determinant (along with product development) in overall success. Also, a business model must be scalable. In addition to a good product, the vision of the business should be clear i.e. scalable business model (from an organizational and process perspective).

Popular Quotes on Good Product and Good Business Model

“A great product without a strong business model is like a sports car with no wheels.” — Robert Richman (Robert Richman is an author, speaker, and consultant who has worked with companies such as Zappos and Airbnb to help them build strong cultures and create amazing customer experiences.)

“A great product is not enough; you need a great business model to support it.” — Michael Dell (Michael Dell is the founder and CEO of Dell Technologies, a multinational technology company that develops, sells, and supports computers and related products and services.)

“The best way to predict the future is to invent it.” — Alan Kay (Alan Kay is a computer scientist and futurist who is known for his work on the development of the graphical user interface and object-oriented programming. He has worked at Xerox PARC, Apple, and Disney Imagineering, among other organizations.)

“The secret of all victory lies in the organization of the non-obvious.” — Marcus Aurelius (Marcus Aurelius was a Roman emperor and philosopher who lived from 121 to 180 AD. He is known for his Stoic philosophy and his writings on self-improvement and personal ethics, which are collected in a book called “Meditations.”)

“A good product should not only meet customers’ needs but also be profitable to the company.” — Philip Kotler (Philip Kotler is a marketing professor and author who has written dozens of books on marketing and business strategy. He is considered one of the world’s foremost experts on marketing and has been called the “father of modern marketing.”)

On the whole, “Good Product and Good Business Model” helped in bringing some clarity to the topic. Always, have a basic idea and keep building on it.

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