Just 5% of fresh products which can be launched yearly are genuinely revolutionary. Think of that for a moment, 95 percent of new product releases are fundamentally knockoffs of an industry leader. Yet another means to state it, the competition beat them to the industry and now they are trying to get yourself a piece of a innovative market by copying the competition’s newest invention. An instance of the could be the recently established Android, 4G cell phone. This is the perfect illustration of what I am describing. Apple’s competition found that Apple generated an innovative smart mobile; Apple’s competition noticed that Apple initiated this market; and developed a market for the iPhone. Therefore today the organic series of activities would be always to knock the boss’s sexy solution, by reverse engineering it as soon as they can obtain their fingers on 1.
Innovation may be the ideal defense towards a recession. I am able to prove this using a specific kitchen wares manufacturer who surely could retain their $100 million in yearly earnings with the addition of SKUs, fresh item. This kitchen merchandise company was able to maintain this sales degree in that recession by introducing fresh innovative products. Though other companies have been losing their sales from 50 percent in 2007 and stopped developing new services and products; this company maintained that $100 million in earnings. The sales of every brand new product have been nothing to write home about. This issue has been solved by correcting inventory levels. In my estimation this was genius https://www.reddit.com/r/GreaTech/comments/8q1357/invention_ideas_and_technology/
I discussed that this product strategy with a product sales executive at the glass production industry and made the opinion that this strategy has been genius. His recovery has been that if that strategy was so genius why doesn’t Mc Donald’s raise their menu? Perhaps he did not realize that Mc Donald’s has been doing particularly that, extending their menu. In that recession Mc Donald’s went after the star bucks market by presenting their high end coffees and remember that healthful market that they are courting today.
Being an OEM Project Manager, Product Developer and sales man for over 20 years my clients and I would only state,”We’ve got 6 – 12 weeks to take pleasure in the benefit margins and amortize the tooling before the item is currently knocked-off and we have to reduce our price to maintain the amount. As you have seen with the iPhone, then the clear answer would be to get a variant 2 awaiting the wings to release. Currently Apple is releasing their own”4G” variant of this iPhone; what does this perform? It keeps the pressure on the competition to continually play meet with the business pioneer. What goes on when your competition introduces their variation of a rival’s invention? Margins go down, volume goes down, and also your innovative product becomes another commodity sold by value.