The boiler and heat recovery business mirrors that of every other industry segment. It goes through periods of euphoric elation and troughs of despair. No business is immune from ups and downs in the economy. This serves to demonstrate the increasing need to be continually developing new products that manifest themselves into new, long-term revenue streams.
The life of the business is dependent on new products driving increased revenue. Too many companies fall into an “extend and defend” strategy as it relates to product portfolio management. This stymies any real innovation as all resources are focused on either minimal product extensions or trying to defend market share at the expense of reduced profit margins. Trying to protect core business leads to stagnant product development. This is termed “locked-in” thinking with little to no product development. The stories are endless about the pitfalls of companies focusing on the “core” as their key strategic directive.