Businesses that stay on the cutting edge of technology have two things in common: product innovation and differentiation.
Product innovation is the introduction of goods or services, or an upgrade of existing offerings, that have significantly improved functions for intended uses.
Innovation improves the process of solving problems as they arise, and even before they arise. Continuous innovation of a product then becomes essential to ensuring a recurring demand for goods.
Product differentiation, on the other hand, refers to the primary attributes of an offering that differentiates it from those of its competitors. Early commercial success of a product or service rarely guarantees future success. Buyers get frustrated when technology providers fail to reflect shifting reality.
To maintain the journey toward getting better and producing the best, these three keys to sustained business success are necessary:
1. Creating Value
When a company uses a differentiation strategy that focuses on the cost value of the product instead of similar products on the market, it creates a perceived value among consumers and potential customers. Innovation helps to make the problem solving process simpler.
2. Non-Price Competition
For an oligopoly market, price competition is critical. However, non-price competition is what gives specific offerings an edge over others. Thus, product differentiation and innovation strategies allow businesses to compete in areas other than price.
3. Brand Loyalty
Continuous innovation and product differentiation will keep customers loyal to the brand and eagerly anticipating what is next. Take Apple for instance . . . new and upgraded iPhones launch every few years along with other products in between, creating a loyal customer base and driving sales for the company.
A company’s overall product strategy must involve continuous innovation and differentiation to drive sales and create increased demand.
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