The 25% Success story
It is said that only 25% new products that are launched become successful. This article aims at looking at some of the strategies employed by those that taste the fruit of success.
BLUE OCEAN Strategy
Blue Ocean Strategy is a book published in 2005 and written by W. Chan Kim and Renée Mauborgne, professors at INSEAD and co-directors of the INSEAD Blue Ocean Strategy Institute. The strategy is about positioning yourself in an unexplored market(new market)when in such a way that the competition becomes irrelevant. It points towards carving a niche for yourself and thus acquiring customers for your brand.
For Eg: Kaun Banega Crorepati created a new era of TV shows in the times of Saas Bahus saga.
RED OCEAN Strategy
A red ocean refers to a saturated market where there is fierce competition among companies offering similar services and the choice is between a value-cost tradeoff to exploit existing demands.
For Eg: The e commerce market in India is dominated by a few companies like Flipkart, Snapdeal and Amazon. These three fight amongst each other by creating small differences in their company strategies in a red ocean market.
LONG TAIL Strategy
Coined by Chris Anderson the theory of the Long Tail is that our culture and economy is increasingly shifting away from a focus on a relatively small number of “hits” (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail.
The red part of the curve are the products which are in demand whilst the yellow part shows a niche product market leading to growth along the horizontal axis.
The Long Tail has been made possible because of shifting of stores from brick-mortar to the online space enabling the removal of challenges like inventory, overhead costs, distribution etc.
Amazon is a widely used example of this strategy as they stock all kind of books. Another example is Google allowing small time traders in niche markets advertising off their site, allowing Google to capture a wide variety of users.
OPEN INNOVATION Strategy
Open innovation is a term promoted by Henry Chesbrough, adjunct professor and faculty director of the Center for Open Innovation at the Haas School of Business at the University of California, in a book of the same name.
“ Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology”
Open innovation is a more profitable way to innovate, because it can reduce costs, accelerate time to market, increase differentiation in the market, and create new revenue streams for the company.
GE partner with Local Motors to launch an initiative aimed at co-creating for a new world of home appliances under the name FirstBuild.
DISRUPTIVE INNOVATION Strategy
Disruptive innovation, a term of art coined by Clayton Christensen, describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.
It is basically innovations that create new markets by discovering new categories of customers. They do this partly by harnessing new technologies but also by developing new business models and exploiting old technologies in new ways
The Transistor Radio offered portability and low battery consumption with not that great sound quality.It was adopted by the teenagers who wanted to bring their music to the beach. With an improve in technology, the sound quality improved and Transistor Radio replaced Analogue, Big Furniture,Radios.
Hi, this article is a part of a series of articles I am writing while studying Design Led Innovation at Srishti Institute of Art, Design & Technology. They are meant to be reflections on things I learn or read about during this time.I look forward to any feedback or crit that you can provide. :)
