ADMS 4570 Chapter Notes - Chapter 12: Timothy Koogle, Frozen Food, Cost Leadership
27 Sep 2016
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Types of innovation: changes in technology. Innovation based on new tech often has a more far reaching impact o. Product innovation creating new products for end users. Product innovations are commonly associated with a differentiation strategy: process innovation - improving efficiency of manufacturing systems and operations. More likely to occur in the later stages of industry life cycle as companies seek ways to remain viable in markets where demand is flattened out: radical innovations- revolutionize a whole industry or transform a company. Ex: computers, electricity, telephone: incremental innovations-enhance existing practices. Ex: frozen food, sports drinks, digital telephones: sustaining innovations- extend sales in an existing market. Since it represented major departures from existing practices and tapped into unmet needs, it steadily grew into ventures that appealed to a new category of customers and eventually overturned the status quo. Challenges of innovation: there is an uncertainty about outcomes.
