The Strategy of Innovation Flashcards
What are the 2 basic functions of a business enterprise?
marketing and innovation
If your product is objectively and subjectively different then you have a ________ _________
competitive market
Marketing and Innovation should not be __________ from one another
independent
What is a key differentiator of successful and unsuccessful firms?
Percentage of revenue obtained from new products
Why do old products need to replaced by new products?
Old products are more than likely moving toward commodification
30K new products are introduced each year but ____ - _____% are withdrawn within 12 months due to disappointing sales
70-90%
What are the 6 Failure Scenarios for new products?
- The Unwanted “Better” Mousetrap (28%)
- The “Me-Too” Product (24%)
- Technical Dog (15%)
- Competitor Reactions (13%)
- Price (13%)
- Other (7%)
no one is ________ to a failure rate of 50%, some firms just do it better than others
preordained
The stages that account for the most success and failure are the least ________.
expensive
The factor that shows the largest difference between most and least productive firms is: ________ ____ ________
degree of customer focus
Why does marketing have the largest general influence on a firm’s success?
Marketing Knowledge is less imitable than technology or operations
Successful ________ will help keep a firm out of the commodification trap
innovation
A major reason for new product failure is a lack of _________
uniqueness
Uniqueness can be achieved by appealing to ________ ________
unfilled niches
Besides uniqueness, what 5 main advantages to pioneers enjoy?
- Brand Loyalty
- Distribution Barriers
- Economics of Scale/Experience Effects
- Premier Positioning
- Standard-Setting
