Another great product bites the dust?
June 3, 2004 Product Management No Comments Viewed: 261 times
It is official. Sony is virtually withdrawing from the PDA market with the decision to stop selling its Clie range of products in the U.S. and European markets. Sony’s move may well be the beginning of the end for the PDA as a product in general. One of the main reasons for lackluster PDA sales - once a hot gizmo among the upwardly mobile population - is the strong competition from “the communication business’s 800-pound gorilla: the cell phone.”
So, will PDAs be relegated to the dustbin of great products that failed? Or will it reincarnate in a different avatar? The debate is on. The product gurus are definitely trying to answer some of the obvious questions: Did Sony (and the others) didn’t foresee the threats from the substitute(s)? Were there simply too many features (do I hear some one say “the iPod lesson”)? Did the price reflect a fair value proposition from the customer’s viewpoint? How do PDAs differentiate from today’s feature-rich cell phones and “converged” mobile phones?
All said and done, it will be a while before the customers give their final verdict on the value of PDA as a product. Sony will more than survive even if the PDA market collapses. Thanks to their wide range of product portfolio and business units. But what about companies whose market presence is solely based on PDAs and related components and services - a company like PalmSource Inc., whose software powers the PDAs and which counts Sony as its second biggest licensee? They would definitely need to do some serious rethinking about their product portfolio. A single product strategy is always dangerous in hi-tech industry - especially considering the fact that technology is itself in a stage of flux.
So what are the lessons to be learnt? The one lesson that I will take home is that product managers within a company should always plan for failure. Always. Even in the best of times - when company’s products are raking in great returns, no competition in sight, substitutes are weak, the party for company’s “Killer Product of the Decade” is underway, etc, etc. - it pays to be a paranoid product manager. In fact, employers should pay product managers to be paranoid! In my book, a good product manager is one who is constantly aware that the next product to kill his/her company’s flagship product may come the very next day. Or while (s)he is sleeping in the night.
- Rajesh
