What does a product development strategy specify?

A product development strategy primarily focuses on the portfolio of new products that an organization plans to develop. This encompasses the planning and prioritization of innovations that align with the company's goals, market needs, and competitive landscape. The strategy outlines what new products will be introduced, the timeline for their development, and how these products fit into the overall business strategy.

By targeting new products, the strategy addresses opportunities for growth and helps in adapting to changing customer preferences or technological advancements. It also serves to allocate resources effectively to R&D efforts, ensuring that the product development aligns with market demands and organizational capabilities.

While other aspects, such as pricing strategies, segmentation, and methods of manufacturing, are crucial to the overall business strategy, they are not the primary focus of a product development strategy. Instead, those elements would fall under different strategies—pricing strategies would deal with how products are priced in the market, segmentation and positioning would relate to current products, and manufacturing methods would focus on optimizing production processes for existing offerings.