Organizational Development: A Manual for Managers and ... - FPDL

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