Will a new feature kill your existing product?
Product cannibalization is not easy to predict, so better to be on the lookout
Introduction
Imagine two of your products on a store shelf, vying for the same customer. That’s product cannibalization — when a company’s new offering eats into the sales of its existing products. For developers, the challenge isn’t just about coding; it’s about foreseeing how new features might compete with your current lineup. It’s a balancing act between innovation and overlap, and in this article, we’ll explore how developers can get ahead of the curve to ensure their products complement rather than cannibalize each other.
Product Cannibalization When You Are a Developer
Product cannibalization isn’t just a marketing dilemma; it’s a development concern too. In layman’s terms, it happens when a new product swipes potential sales from an existing one, much like a new sapling pulling resources away from a neighboring older tree, stunting its growth. For developers, recognizing this early on is crucial to prevent wasting resources and diluting the brand.
Here’s a grounded example: Remember when smartphones emerged? They weren’t just phones; they were cameras, calendars, and notebooks all in one. This convergence was innovative but inadvertently led to a decline in sales for standalone digital cameras and planners. For the teams behind these products, it was a wake-up call. Development isn’t done in a vacuum; every line of code could potentially shift the market landscape.
The relevance for developers here is direct. When you’re building a feature that overlaps with existing products, you’re at a crossroads.
Take navigation apps, for instance. If a company that owns a popular GPS app releases another with similar functions but a slightly different interface, it might split its user base, reducing the impact and profitability of both.
But it’s not all doom and gloom. This awareness can foster innovation. Developers can help steer the product away from dangerous waters by identifying unique selling points (USPs) that differentiate rather than duplicate. Consider how streaming services like Netflix and Hulu differentiate their offerings with exclusive content rather than just competing on interface design or streaming quality alone.
Developers Are Vital For An Effective Product Strategy
Developers aren’t just the builders; they’re the strategy’s unsung heroes. They’re in a prime position to shape product strategy because their choices of technology and features can directly influence the unique value a product brings to the table. Let’s unpack this.
Take the case of two messaging apps under the same corporate umbrella. If developers from both teams choose different underlying technologies, the products can more easily target distinct markets or use cases.
For instance, WhatsApp uses end-to-end encryption which has become a cornerstone of its product strategy for user privacy, while Facebook Messenger focuses on integration with the broader Facebook ecosystem.
Moreover, developers’ insights are vital in feature selection. They’re on the front lines, seeing firsthand what can be done technically and what should be done strategically.
Instagram, for instance, might push back on incorporating a feature that’s too reminiscent of parent company Facebook’s offerings, thus helping to keep the platforms distinct and avoiding self-competition.
Effective cross-functional communication is where the magic happens. Developers who understand and contribute to broader business goals can advocate for technical paths that support the company’s overall direction.
Think about the development of Amazon’s Alexa, which wasn’t just about building a voice assistant but was also about integrating with Amazon’s e-commerce platform to drive sales.
In real terms, when developers engage with marketing, sales, and upper management, they’re not just receiving orders; they’re providing critical input that can make or break the product’s success in a crowded marketplace. Their role is to ensure that the technical execution underpins a differentiated strategy, allowing the company to plant multiple flags in the market without them being uprooted by internal competition.
Identify Risks of Overlap During Development
A developer’s foresight can be the first line of defense against product overlap. Being immersed in code and functionality, developers are often the first to spot redundancies that could signal cannibalization risk. It’s like recognizing that two puzzle pieces don’t fit together long before the whole picture is complete.
For instance, let’s consider a development team at Google working on a new email feature. They might notice that the feature closely resembles an existing one in Google Docs. Rather than pushing ahead, they can raise a flag. This early detection is crucial; it allows the team to pivot or modify the feature to serve a different purpose or target a new audience segment, much like how Google Sheets offers collaborative features distinctly different from Microsoft Excel.
To make informed decisions, developers can use techniques like feature flagging and A/B testing. Feature flagging allows developers to roll out features to select user groups before wide release.
LinkedIn has used feature flagging to test new features with subsets of its user base, enabling data-driven decisions that prevent overlap with existing functionality.
A/B testing offers a more granular approach. By presenting two versions of a feature to users, developers can collect data on which one performs better. This is akin to a chef tasting two versions of a dish before deciding on the final recipe.
Netflix, for instance, extensively uses A/B testing to understand what keeps viewers engaged without muddying the waters with similar show features.
Build Collaborative Codebases and Reusable Components
In the software world, writing code from scratch for every new product is like reinventing the wheel — it’s often unnecessary and inefficient. This is where the beauty of collaborative codebases and reusable components comes into play. By sharing and reusing code, developers can avoid duplication of effort, which not only streamlines development but also reduces the chance of product overlap.
Take, for example, the way large tech companies like Netflix or Uber approach their codebases. They don’t start from zero for each new feature; they build libraries of reusable code that any team within the organization can access. This approach is not just about efficiency; it’s about creating a cohesive user experience across different products. Netflix ensures that whether you’re watching on a phone or a smart TV, the core elements feel familiar because they’re built from the same code components.
Another key strategy is the use of microservices architecture, which breaks down applications into smaller, loosely coupled services. This enables different teams to work on separate services independently without risking the overlap of functionalities.
Amazon has famously used microservices to scale its vast array of services, from Amazon Prime Video to Alexa, ensuring that while each service grows, they do so without stepping on each other’s toes.
By creating modular and reusable code, developers not only increase efficiency but also cultivate an environment where innovation can thrive without the constraint of unnecessary competition. It’s a mindset that not only tech giants but also startups are embracing, recognizing that in the fast-paced tech industry, the ability to quickly adapt and reuse is invaluable.
Feature Deprecation and Progressive Enhancement
The lifecycle of any digital product involves not just creation, but also curation — knowing when to retire a feature is as important as knowing when to introduce one. This is where feature deprecation and progressive enhancement come into the fold as strategic tools in a developer’s arsenal.
Feature deprecation
Feature deprecation is the process of phasing out features that are no longer beneficial or that risk cannibalizing other products. It’s not a decision taken lightly; it involves analyzing user engagement metrics, market trends, and the company’s future direction.
Microsoft’s decision to phase out Internet Explorer in favor of Edge is a prime example. They recognized the need to not just update, but upgrade the browsing experience significantly to stay relevant and avoid internal competition with their newer, more advanced product.
On the flip side, progressive enhancement is about gradually improving the user experience without alienating existing users. It’s about adding layers of sophistication to an existing product while maintaining its core functionality.
Twitter’s evolution is a testament to this approach. Over the years, it has added features like threaded tweets and improved media handling, enhancing without overhauling the simple, quick-fire tweeting experience that defines it.
From a development standpoint, both strategies require a nuanced understanding of the product ecosystem. Deprecating a feature too soon can alienate users, while too late can lead to clutter and confusion. Similarly, adding too many enhancements without a clear strategy can dilute the product’s value proposition.
Developers are critical in this balancing act. Their insights into the technical underpinnings and user data can guide the timing and approach to feature deprecation and progressive enhancement. For instance, Google’s continual updates to its search algorithm are informed by exhaustive data analysis and testing, ensuring each enhancement serves a clear purpose without overshadowing the core search functionality.
Case Studies: When Developers Averted Cannibalization
Real-world examples abound where developers have played a pivotal role in navigating product overlap, ensuring that their companies’ portfolios are well-differentiated and strategically positioned.
Apple
Consider Apple, which has a history of self-cannibalization as a growth strategy, such as when the iPhone risked cannibalizing iPod sales. However, Apple’s development strategy has been to ensure each product has clear, unique value — like the Apple Watch’s health features or the iPad’s creative capabilities — despite overlapping functionalities. Developers at Apple have to be acutely aware of the ecosystem and design products that, while standalone, complement and enhance the value of other devices in the lineup, rather than simply replacing them.
Conclusion
Developers are far more than mere threads; they are crucial weavers whose insights and decisions shape the pattern and strength of the final fabric. Their role extends beyond the technical to the strategic, where their understanding of code intricacies informs and influences the broader business canvas. By staying proactive, developers ensure that products not only coexist without conflict but also complement and enhance one another, much like a well-coordinated team where each player knows their role and the collective goal.
Written by: Inchara, kubo media team.
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