Understanding overperformance and purchasing tier models for product positioning


Purchasing class model in the market as products move through each stage of functionality, reliability, convenience, and price.

The purchasing tier model is Klaytn Christensen. The dilemma of successful companies > introduced in the book. Clayton Christensen The dilemma of successful companies > and its sequel growth and innovation After writing >(The Innovator's Solution) Innosight It is said that he founded a company called

After the Goldrush Paper#3: Positioning along the Prevailing Basics of Competition This is a report called (PDF).

The report views each level of the buying hierarchy as a factor in the competitive landscape and graphically illustrates how these levels move with market performance over time.

 

buying hierarchy

 

Clayton Christensen The dilemma of successful companies > mentions this model primarily because the author believes that the cause of each phase of a product's lifecycle shift is the overperformance of each phase. In the model of the purchasing tier, it appears to compete with its competitors at each stage and move on to the next if this is oversupplied.

It seems important for us to understand the current situation, and to determine if we are currently in oversupply or not.

Another interesting addition to this report, which is not in the book, is that there are several phases in the Internet business at once, whereas in the past there were each level of functionality, reliability, convenience, and price.

In the case of convenience, for example, it is not a singular attribute, but rather an umbrella-like attribute that includes many different subcategories.

So, not only do they need to get their products to market quickly, but they also need to provide functionality to niche markets and conveniently customized features to their users.

 

 

I said convenience, but it seems to mean usability. Usability these days design There are many products that are this basic.

Since iPod and iPhone encompass not only functionality, but also usability and design, Clayton Christensen said that Internet business is in a multifaceted state where convenience is seen as other factors. I would like to. Or maybe it's just an IT machine, I don't know.

Clayton Christensen didn't talk about design, but in a way Samsung Electronics' refrigerator designed by Andre Kim I think it came from a situation where design was added to the convenience and functionality of Daum.

It seems that another situation has arisen since the price was rather raised even if only the design was changed while the function and usability were not changed.

 

Samsung Electronics' refrigerator designed by Andre Kim

 

To be successful in business, you need to figure out where you are in the market, decide how to position your product, and take the necessary actions.

As a way to do so, you can use this purchasing tier model. If the market for a product is currently shifting from a convenience-oriented position to a reliability-oriented one, then it is necessary to innovate and act accordingly.

The report lists six business cases.

Practitioners may not use these models because they tend to think of models and case studies as fitting them after interpreting them.

This model may not be correct. There are cases in which design-in cases or usability and design-added stages exist.

However, you cannot do without any tools to understand the present in order to position your product.

I am not sure, but I think it would be helpful to use this model to diagnose the current product situation in the market and to establish and implement a strategy for positioning.







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