How Are You Competing – Innovative Product

forget-your-customers-develop-innovative-business-models

This is part 2 of 4 blogs which will cover the different customer value propositions that a company can use to compete in the market place.

Competition is something natural for people. We all have a competitive streak. Some of those streaks run deeper than others, but it is still there.

When companies are competing against each other, competition can take on different forms. We have already looked at operational excellence, where companies want to be known as the cheapest in their industry. Is there a way to compete where you could be the most expensive in the market but yet consumer are accepting of it?

What if you consistently brought on new technologies, usages, or ideas to market? Would your consumer pay a premium to buy the latest and greatest item? Many do and some companies compete on that basis.

Many innovations in the car industry get their roots from Toyota Motors. They were able to find ways to bring new technologies and usages for cars that other automakers hadn’t implemented. Products made by Toyota are generally higher, in terms of price point, than their competitors.

Being an innovative company does come with pitfalls. What do you do with your corporate strategy when another company leap frogs your cutting edge product? Do you add extra resources try to leap frog them so you are back in front? Possible, but research and development into products is not a cheap venture. Do you have the financial and human capital to orchestrate that leap? You could be spending a fair amount of resources try to get back in front but never get there.

What company do you consider to be a consistent innovative leader in their industry? Any companies you felt were in that position but haven’t been able to keep up to change lately?

Have a productive week.

Kevin

Kevin MacDonald is a Business Consultant at L6S Business Consulting Inc (www.L6SBC.ca). L6S offers services in management consulting, Controller and CFO contracting, and lean management with either project work or teaching/mentoring of staff. Kevin has his CMA accounting designation along with a Black Belt in Lean Six Sigma.

Kevin is active in the community by volunteering for the South Edmonton Business Association, the Fringe Festival, Goodwill Industries of Alberta and donates blood at the Canadian Blood Services.

For help with your business, contact Kevin at kevin@L6SBC.ca or 780-868-1867. You can also follow Kevin on Twitter at @L6SBC or Facebook.com/L6SBC

 

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