In business strategy, complements refer to products or services that are often used together and have a positive relationship. Identifying complements is important as it can help a business increase its revenue and customer base.
There are several ways to identify complements:
- Market research: By studying the market, businesses can identify products or services that are commonly used together. This can be done through surveys, customer interviews, and analysis of sales data.
- Customer feedback: By asking customers directly what other products or services they use in conjunction with a business’s offerings, businesses can gain insight into potential complements.
- Industry analysis: By studying the industry and its trends, businesses can identify products or services that are emerging as complements to existing offerings.
- Competitor analysis: By studying the offerings of competitors, businesses can identify products or services that are commonly bundled with their offerings, which may indicate complements.
Once complements have been identified, a business can use this information to develop new products or services, bundle existing offerings, or form partnerships with complementary businesses. For example, a company that sells smartphones can identify that many customers who purchase a new smartphone also purchase phone cases, screen protectors and earphones. The company can then bundle these items with the smartphones or form a partnership with manufacturers of these complementary products.
In conclusion, identifying complements is an important aspect of business strategy. By understanding the products or services that are commonly used together, businesses can increase their revenue and customer base by developing new products or services, bundling existing offerings, or forming partnerships with complementary businesses.