How to grow a company: more products or more content?

Prince Charles Google Glass

If managers make the correct decisions their companies will continue to grow. A common company growth decisions is: should we make more products or more content? More products or more content refers to a situation in which a company has reached a plateau and can choose one of the two:

1) Make more products – a company can grow by making and promoting more products which are sold using the current sales methods to current customers. This is an easier and safer way to increase the revenue within the current market, but it does not make the company more competitive outside that market. No new skills are needed but new markets are not reached.

2) Make more content – a company does not make new products but decides to use the content to promote current products in new markets, to develop new sales methods, and to aquire new customers. The company becomes more competitive in new markets, but this is riskier than making more products because new skills are needed.

Examples can be Microsoft and Google. Microsoft is a more products company, and Google is a more content company (read more). Microsoft revenue is diversified, while Google depends greatly on a single product – advertising. Other Google products and services should be considered content because they are free and promote the advertising. For example, Google Glass was useful as a form of content in at least providing us with above photo of Prince Charles :)

There is a third option which includes making more products and more content, and approaching new markets, but majority of companies do not have the skills nor resources to implement this strategy. This model does not include the acquisition of new companies in new markets which is a separate case. See a Snapple example.

The purpose of this kind of formalizations is to help managers define the situations and options better to themselves and to their teams.

Written by: Nikola Tosic
Publishing date: 3 Jul 2017