A key foundation for market innovation is the process of redefining markets in non-traditional and unique ways that identify both active and latent market opportunities. By leveraging process and technology innovation, enterprises can define new market space that exist in the gaps within, around and between traditional target markets.
A market innovation strategy can deliver several critical elements of competitive advantage, including:
- Avoiding direct competition with entrenched solutions by focusing on real, compelling and relevant unmet needs in new market space, rather than on price/performance/features.
- Clearly defining target markets by identifying unmet customer needs and developing compelling value propositions.
- Focusing product, business model and value chain innovation on the unmet customer needs that offer the greatest market opportunity.
- Avoiding market space “white noise” that can lead to misuse and waste of critical human and capital investment while pursuing opportunities that are suboptimal and not competitively differentiated.
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