Organizational Development: A Manual for Managers and ... - FPDL
Organizational Development: A Manual for Managers and ... - FPDL
Organizational Development: A Manual for Managers and ... - FPDL
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As illustrated in Picture 22, the whole space of products to be considered (characteristics of a<br />
product) may be divided qualitatively into different zones.<br />
Zone 1 is the place where the provider <strong>and</strong> client actually meet. The product or service is known to<br />
the market <strong>and</strong> is delivered in a way that suits clients. The price is normally low, because of<br />
competition.<br />
Zone 2 represents actual products that are not in dem<strong>and</strong>, although they correspond to needs. But<br />
the client does not hear the provider. Because the needs are not recognized, or the product is<br />
unknown, or the way to procure the product is too secret. Proper advertising may help here.<br />
Zone 3 does not need any advertising. The dem<strong>and</strong> is already present. But the organization does<br />
not hear its potential clients. More careful investigation of the market may help in this case.<br />
Zone 4 is where dem<strong>and</strong> already exists, but the capabilities of the organization do not permit it to<br />
offer the corresponding product. The product may be considered as the organization develops, but<br />
such a decision should be very well weighed. Where the dem<strong>and</strong> exists – others can also see it,<br />
<strong>and</strong> invest in the same capability; thus, be<strong>for</strong>e the project is implemented there may already be an<br />
oversupply of the product <strong>and</strong> no chance to earn dividends of any kind.<br />
Zone 5 is the most interesting one. It is a gold mine! The organization has corresponding<br />
capabilities, <strong>and</strong> corresponding needs are already in place. But nobody has yet asked <strong>for</strong> such a<br />
product, <strong>and</strong> nobody has proposed it. There is no competition. When the product will appear,<br />
prices will be determined by the usefulness of the product <strong>for</strong> the client. Later on, when the product<br />
moves to Zone 1, prices will be determined by prime costs. The only question is, can the<br />
organization remain the only supplier of this product long enough to cover the costs of developing<br />
<strong>and</strong> introducing it to the market?<br />
Zones 6 <strong>and</strong> 7 should be considered in terms of the future development of an organization. An<br />
organization should be prepared <strong>for</strong> the time when dem<strong>and</strong> will move (or be ready to move) to<br />
these zones.<br />
The fact that any organization always has room to develop its product does not mean it is always<br />
clear what is better to do. We want to stress that whatever the product of organization might be –<br />
this is a matter of choice.<br />
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