Navigating Product Strategy- Depth vs. Width in Business

Width is the number of products offered by the company.
Depth is the number of products offered by one specific product line

In the dynamic landscape of business, companies face critical decisions when it comes to their product strategies. Two fundamental approaches that businesses often consider are depth and width. Depth refers to the extent of products offered within a specific product line, while width pertains to the breadth or variety of products offered across different lines. In this blog post, we delve into the nuances of depth vs. width in product strategy, exploring their implications and providing examples to illustrate their significance in driving business success.

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If you are wondering if a company manufacturing 50 products is better or more successful than a company making only 1-5 products, then you might be wrong. Think about it again. Look at the “Apple” brand strategy.

So the strategy is to focus on the first one product and the product’s design and its functionality first, which is called the “depth” and once that particular product gets successful, then you can go to manufacture some other product or commodity. This should ideally be the strategy to be incorporated in most businesses.

What is Width ?

Say if you have a business, the width is described as the number of parallel product lines a company or a brand has on offer.

Business width is not always a path towards growth and it can have unintended consequences for other business aspects — including the consumer experience central to the company’s value proposition.

Indeed, present trends are moving away from broad offerings or width in many sectors and industries. A recent poll had 75% of customers saying they would pay more for a simpler, more convenient and basic experience.

For instance, McDonald’s was known for years that customers were demanding an all-day breakfast, but to be able to offer it, it first had to focus on the “depth”. Yes, they had to streamline and revamp its kitchens first and then work on the other aspects.

What is Depth ?

Growing your business and building it, greatly depends on the relationship you have with your consumers. This is the key element of building your presence and ensuring you remain in your target audience’s minds.

The best way to do it and ensure it is by focusing on the depth. Depth essentially means focusing on one particular product and bettering it and bettering it, until success is achieved. This is also called “maximum focus in minimalist approach” that involves digging through the depth of the complexity. In other words, you have to go really really deep.

This also means, reducing the non-essential in order to focus on what’s truly important, what gives purpose to your lives, what gives you value…true and real and genuine value. This core concept is called art of focus or “depth” and the biggest global testimony is Apple which always believed in achieving more by doing less.

Depth in Product Strategy:

Depth in product strategy involves focusing on offering a comprehensive range of products within a specific product line or category. Companies that prioritize depth aim to cater to diverse needs and preferences within a niche market segment. By specializing in a particular area, these companies can leverage their expertise, build brand loyalty, and differentiate themselves from competitors. For example, a company specializing in athletic footwear may offer a wide range of shoes designed for different sports and activities, such as running shoes, basketball shoes, and soccer cleats. By focusing on depth, the company can establish itself as a go-to destination for athletic footwear, earning the trust and loyalty of customers seeking specialized products.

Width in Product Strategy:

Width in product strategy involves diversifying product offerings across multiple product lines or categories. Companies that prioritize width aim to appeal to a broader customer base and capture a larger share of the market. By expanding into new product categories, these companies can mitigate risks associated with market fluctuations and capitalize on emerging trends. For example, a consumer electronics company may offer a wide range of products, including smartphones, tablets, laptops, and smart home devices. By diversifying its product portfolio, the company can cater to different consumer preferences and adapt to changing market dynamics, thereby enhancing its competitive position and revenue potential.

Depth vs. Width: Finding the Right Balance

While depth and width represent distinct approaches to product strategy, the most successful companies often strike a balance between the two. Achieving the right balance involves carefully assessing market opportunities, understanding customer needs, and aligning product offerings with strategic objectives. Companies must weigh the benefits of specialization and expertise against the advantages of diversification and market reach. Ultimately, the optimal product strategy will vary depending on factors such as industry dynamics, competitive landscape, and organizational capabilities.

Examples of Depth vs. Width in Product Strategy:

Final Thoughts

Depth and width are critical dimensions of product strategy, requiring careful consideration for sustainable growth and competitive advantage. Whether prioritizing specialization within a niche market or diversification across multiple markets, businesses must align their offerings with strategic objectives and customer expectations. By striking the right balance between depth and width, companies can effectively meet evolving needs, drive innovation, and position themselves for long-term success.

While driving a vehicle, focusing solely on driving is paramount to safety. Similarly, in business, depth takes precedence over width. By concentrating efforts on a single product or a select few, entrepreneurs can maintain clarity of vision and effectively solve problems from identification to execution. This approach, advocated by experts like Hirav Shah, a renowned Brand Builder and Validation Expert, ensures efficient resource allocation and maximizes effectiveness.

Businesses that spread resources too thin across numerous activities risk reduced efficiency and effectiveness. Success in business often hinges on focusing on a limited number of products, with expansion considered only after achieving success with initial offerings. In conclusion, the depth of focus trumps the width of offerings in the pursuit of sustainable business success.