Types of convergence product and business strategy

Abstract

Product convergence is perhaps one of the most effective differentiation strategies in today’s competitive business environment. This paper provides conceptual classification of different types of convergence strategies based on the market positioning and degree of market substitution. Five different types of convergence strategies are proposed and subsequent managerial and organizational arrangements are recommended according to the contingency view. It is suggested that the most radical convergence does not require conventional strategies such as differentiation and market positioning, but need disruption in multiple markets to substitute existing products.