Part III (creating new businesses (diversification) (evaluation (is the…
creating new businesses (diversification)
a space that contains all business areas not in existence
innovation advantage/first mover advantage
Barriers that can be raised by the innovator
competitors are inhibited from responding to a new entrant
it will cut deep into their revenue especially if they are unable to target the fight
competition lacks KSF
playing catch-up technologically
the innovator create customer loyality
Patterns that has been successful in the past
from component to systems
system solutions, problems comes in clusters
needs that we dont yet know that we have
segmentation and targeting
find a parade and get in front of it
healthy eating and exercise
innocent fruit smoothies
dramatically lower pricepoint
offer something simpler and cheaper than the established firms
improving functional value, better solving customers problems
is the market real?
is there a need?
is the need shared by enough people?
will the customer buy the product?
is the product real?
can it be made?
would it satisfy the need?
can the product be competitive
Is there CA or SCA
can the company be competitive?
will the product be profitable at an acceptable risk?
Does it make strategic sense?
do it fit our overall strategy?
tracks that leads to failure
short term financials pressure curse
sacrifice innovation for short term gains on the stockmarket
the silo curse
Innovation require holistic perspective
the curse of success
when business is good there is available funds for innovation but there is less incentive and vice versa
the incumbent curse
Polaroid and digital technology
the commitment curse
tunnel vision only invest in incremental innovation
the size curse
energizing the business
selling more of the same product to the same cutomers
motivate users to use more
larger holes on tubes
make use easier
frequent flyer points
remove obstacles to buy
remind users to buy
position for regular or frequent use
bukarbonat as a drain cleaning
product and brand development
developing new products for current market by developing competences around innovation
focus of innovation/improvement
value of customer experience
value of product
product line extentions
feature, ingredient or technology, service that differentiat the brand
amazones feature of recommend books
missed oppertunity, they could have branded it
reasons for branding
add credibility and legitimacy to a claim
makes communication easier
makes it hard to copy, since it is closely associated with the brand
product promotion, symbol program that energize the brand
Ronald MacDonald house
sponsor popular teams
get popular endorsers
leveraging the business (market development)
extension by leveraging competencies
what are our key competences and what new submarkets can we enter where our key competences comes to flurision
extension by leverging assets
evaluating possible brand extensions
does the brand fit the submarket
does the brand add value to the offering does it allow the company to charge a premium?
will the extension enhance the brand name and image?