Product Innovation Framework
Product innovation
Product innovation can widen the market and enhance product differentiation, leading to increased mobility barriers and competitive advantage.
- Product innovation can provide a competitive advantage
- Product innovation can enhance product differentiation
- Continual innovation is necessary to maintain a competitive advantage
- Identify Opportunities for Product InnovationIdentify opportunities for product innovation and developmentPro tipConsider the complexity of the technology and the availability of skilled personnelWarningUnderestimating product innovation can lead to loss of competitive advantage
- Develop Product Innovation StrategyDevelop a strategy to innovate and develop new productsPro tipInvest in research and developmentWarningFailure to innovate can lead to loss of competitive advantage
- Monitor Industry TrendsMonitor industry trends and adjust strategy accordinglyPro tipConsider the impact of product innovation on competitive advantageWarningFailure to monitor industry trends can lead to loss of competitive advantage
Digital Watch Example
The digital watch industry experienced changes in industry structure due to product innovation
OutcomeCompanies that innovated and developed new products maintained their competitive advantage
Underestimating Product Innovation
Failing to consider product innovation can lead to loss of competitive advantage
Failing to Innovate
Failure to continually innovate can lead to loss of competitive advantage
The framework is based on the idea that product innovation can provide a competitive advantage.
Source · BOOK
Competitive Strategy