Product Organisation - Definition & Meaning
What is Product Organisation?
Product organisation is formed on basis of a particular product or service. These kinds of departments can operate autonomously. Product organisation is the grouping of sales and production efforts of a business as per the line of products and services of the business. This kind of organisation is chosen by businesses when they have some different product lines and they require special expertise for marketing and distributing them.
This kind of organisation offers better co-ordination which is the key advantage of product organisation. It helps in reducing communication barriers among functional specialists working on same product or service. And responses got from these organisations are fast.
Apart from having advantage, it shares disadvantage too. Sometimes product oriented departments may work at cross purposes. For Example- If brand X manufacturers SUVs and high end niche cars too. But dealers will keep either SUVs or niche cars not both in their showrooms.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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