MIT SMR Article, "Use Strategic Market Models to Predict Customer Behavior" - Spring 1996 David E. Schnedler. Reprint 3737

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Use Strategic Market Models to Predict Customer Behavior

David E. Schnedler

Topic: Corporate Strategy

Reprint 3737; Spring 1996, Vol. 37, No. 3, pp. 85–92

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Positioning products in a complex market can be one of a company's most difficult decisions. In determining whether to combine or maintain separate product lines, Hewlett-Packard used an approach it calls strategic market modeling (SMM) to design "what if" scenarios and run simulations to predict market behavior. SMM combines demographic, user needs, and competitive perception data into a database for testing alternative positioning strategies. The author describes HP's development of SMM and the lessons learned.

David E. Schnedler is a planning manager in Hewlett-Packard's corporate development department.


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