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Project-Based or Product-Based?

 To make their customers happy, project- based companies develop very custom applications, often where the client owns their intellectual property. A challenge faced by a product-based company is the market need for the product and predicting the features that enhance the customer's workflow. Product-based companies make a specific product and try to market it as a solution. But project-based companies create a solution based on many products and sell it as a packaged solution to a particular need or problem. For example, Coca cola, Pepsi, Colgate manufacture their products in the plants and then market and sell them with profit to the customers.

With that being said, there are varying opinions as to just exactly what is a "project-oriented" company. Many describe project-based companies as those whose main business is to run projects for external clients, as well as for traditional service-or product-oriented companies. Project-oriented companies, also known as matrix-based organizations, group employees into teams. Each team works to complete a task, which might be a project, product or program that benefits a specific organization. The matrix structure is just one type of organizational structure available to companies. They usually include construction companies, software developers , advertising agencies or audit firms.

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