Designing for superior business performance

A guide for technology, creative and startup leaders

Choice 2: Where we play - complement opportunities

In this chapter

1. Overview of what is the profitability opportunity from complements

2. Understand how complement opportunities can be created in segments qualifying as candidates for a related complement

3. Identify complement opportunities for your value proposition(s)

4. Tools that can help build and sustain your understanding

Introduction

Complements are products or services that drive the demand for other products or services, such that when the demand for one product increases so too does the demand for the complement.
When fuel is cheap and future price expectations are stable then the demand for less fuel efficient / larger motor vehicles has historically increased.
As consumption of fast-food increases so might the demand for diet formulas and solutions.

Creating complement opportunities

Business partnerships can create complementary arrangements. McDonalds and Disney do this. Disney have a children’s movie and have a complementary arrangement with McDonald which have a special kids meal related to the movie. Kids see the movie which increases the demand for the Happy meal. Kids eat the Happy meal, get the Disney movie toy which increases demand to see the movie.
Other examples are stores that sell sports and athletic wear may have an arrangement where they provide discount referrals to the local health club / Gym and vice versa.
Those buying sports attire need a place to do their exercise and those doing their exercises need attire to do them in. The business arrangement is complementary because it is addressing related needs of the same market segment with complementary offerings.

Continue with discovering opportunities and threats from your where to play choice(s)