Matrix to measure in Jobs To Be Done Strategy

Many companies struggle to predict which products and services will do well in the marketplace. While the concepts of failing fast and pivoting are widely accepted, they have not significantly increased the number of successful new product launches. Although traditional innovation practices claim to put the customer first, they are more focused on the product and fail to reveal the customer insights a company needs to manage risk when enhancing existing products and creating new ones. Indeed, many people believe predicting the success of a new offering with any degree of precision is next to impossible.

But the Jobs-to-be-done theory says otherwise. The approach is based on the fundamental notion that people buy products and services to help them get a job done. When you use a jobs-to-be-done lens to examine product successes and failures, you will observe the same phenomenon repeatedly: that new products and services in the marketplace if they help customers get a job done in a better manner and more cheaply.

The discovery of five unique growth strategies companies can adopt to win in a market came from this simple observation. The jobs-to-be-done growth strategy matrix was created, providing a framework that illustrates when and how these strategies should be used. The matrix helps companies decide which method to use to achieve their desired growth objectives. With this simple framework, companies can understand their past successes and failures and adopt a strategy to create winning products and services in the future.

The Jobs-To-Be-Done Growth Strategy Matrix

Theorists concluded that each of the five situations warranted its distinct strategy. Intending to create a framework for proactive strategy formulation, they asked, What unique method can be employed in each of these five situations? They came up with a new type of strategy to address each of the five different situations. They named it using terminology already well-established in design and innovation.

Differentiated strategy

A company uses a differentiated strategy when it creates a new product or service that does a better job than existing products in the marketplace but at a higher price. An example of a company that has used this successfully is Nest, Nespresso's coffee and espresso machines, Apple's iPhone 2G (first generation), the Herman Miller Aeron chair, Whole Foods' organic food products, Emirates airlines' international flights, Bang & Olufsen's personal audio products, BMW sports cars, Sony's PlayStation (original model), and the Dyson vacuum cleaner and Airblade hand dryer.

In each of these cases, the company could offer a product or service that was different from what was provided by its competitors.

Dominant strategy

A company can achieve a dominant market position by releasing a new product or service that outperforms the competition in some way, whether in quality, price, or both. Google Search, Google AdWords, UberX, Progressive Insurance's nonstandard automobile insurance, Vanguard Group's investment services, and Netflix's streaming video are all examples of products or services that have used this strategy to become market leaders.

Disruptive strategy

A company employs a disruptive strategy when it finds and zeroes in on a demographic of overserved customers or nonconsumers and offers them a new product or service that does the job cheaper, though not as efficiently as competing solutions.

A few examples of products or services that have utilized a disruptive strategy to great effect are:

• Google Docs (as opposed to Microsoft Office).

• TurboTax (in comparison to traditional tax services).

• Dollar Shave Club razors (when compared to Gillette).

• ETrade's online trading platform (as compared to traditional financial brokerages).

• Coursera's online educational services (relative to conventional universities).

Discrete strategy

A company decides to pursue a discrete strategy when it targets a population of "restricted" customers with a product that gets the job done worse yet costs more. This strategy can work pretty well in situations where customers are legally, physically, emotionally, or otherwise restricted in how they can get a job done. For example, a company might sell a less effective yet more expensive product to customers emotionally attached to the brand and therefore less likely to switch to a competitor.

A discrete pricing strategy is a business strategy in which a higher price is charged for a product or service that is not readily available. This is because customers are willing to pay more for the convenience of not having to search for the product or service. Some businesses that have successfully employed a discrete pricing strategy include check-cashing and payday-lending services, ATMs in remote locations, and drinks sold in airports past security checkpoints.

Sustaining strategy

A company pursues a sustaining strategy when it introduces a new product or service offering that gets the job done only slightly better and slightly cheaper. This is a common strategy employed by companies to maintain their market share. Some examples of offerings that successfully use a sustaining strategy are plentiful.

ConclusionThe jobs-to-be-done growth strategy matrix can help to show companies which product strategies are best for them once they know their market dynamics. This is a valuable tool for new market entrants and incumbents who want to win in any market. The framework is useful for companies of all sizes, from Fortune 500 companies to start-ups. It helps businesses to ensure that the products and services they introduce into the marketplace will be successful.

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