• attract new customers for existing product
• increase prices for your existing customers
• build a new product and business
As a product matures, market makes clear all sorts of adjacent products that are prime ideas for expansion.
If the company does a good job, this can do more than sustain prices but find subtle ways to increase prices as well (premium tier, etc.) but super tough.
Worst case is data shows use of the new stuff is very low. Scary.
“A tie is a win”.
Challenge still remains. Why? Because almost all the time what happens is the next new product is now a separate business, but it is designed and sold from the start as an “add-on” or adjacency to big biz.
The GTM will go after same customers with same approach.
Incrementally better, but new GTM/CAC costs and likely the pricing is much lower than say a stand-alone Co b/c you can afford it.
To do more, McDonalds would really need a whole offering/GTM that competes (and a lot more stores).
The tendency is to build and view the subscription as “best” on the existing platform AND to sell/acquire as an attach.
Observers tend to assume categories are a immutable and sustainable.
There’s often a hybrid.