The reactive strategy, here it goes...

In product development process, there are two strategies that can be used i.e. the reactive strategy and the proactive strategy. Focusing on reactive strategy, there are four main branches that supports it:

- Defensive

To create a product development after the competitors have successfully launched a new product

To reduce the effect on competitors’ new products

Effective for short term purposes

- Imitative

To copy quickly the competitors’ product before it reaches its success

To give the fastest response on the competitors’ products

Can spoil the company’s reputation

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- Second but better

Makes sure that the competitors launch all of their products first, and then the company will not only copy, but improvise

Can create a new product development better with low budget

Can spoil the company’s reputation

-Responsive

To provide response on customer’s wants

The new product has a clear market already

Mostly needs a lot of budget

In brief, reactive strategy basically suggests on a way where the company only “replies” to what the competitors are doing. Fewer initiations are shown for the product development, as in this process, competitors’ products are the benchmark and thereby being followed as their strategy. Some people may say that this process may look like “Me-too concept”, but in “Me-too Concept” there are ways of conducting so, and it is different than reactive strategy. In reactive strategy, though it seems more profitable, yet most of the results have brought about into spoiling on company’s reputation, as those companies are believed to have copied more that conducting their own product development.

For more details on Product Development, please contact:

KIRTI PARKASH

+62 21 8378 3288

kirti.parkash@frontlinerinc.com