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Chapter 13 - Creating new businesses. This chapter presents the following content: Create “must haves,” rendering competitors irrelevant, the innovator’s advantage, managing category perceptions, creating new business arenas, from ideas to market. | PPT 13- Chapter Thirteen Creating New Businesses Strategic Market Management 7th Edition – David Aaker PPT 13- The New Business Change what the customer is buying Transformational innovation Different business strategy including new assets & competencies PPT 13- Blue vs. Red Oceans New market space Create demand Make competitors irrelevant Create new strategy Transformational innovation High risk-high return Existing market space Beat competitors Improve market share Improve existing strategy Incremental innovation Lower risk PPT 13- Barriers to Long-Term Success of Improving Existing Businesses Competitors response – fast and vigorous Hard to hide incremental innovations Market dynamics – easy to get behind & become less relevant Overcapacity PPT 13- The Innovator’s Advantage Competitors inhibited from responding Fear cannibalization Fear taking eye off existing business Competitors unable to respond Lack assets, competencies, culture etc. Innovator can create . | PPT 13- Chapter Thirteen Creating New Businesses Strategic Market Management 7th Edition – David Aaker PPT 13- The New Business Change what the customer is buying Transformational innovation Different business strategy including new assets & competencies PPT 13- Blue vs. Red Oceans New market space Create demand Make competitors irrelevant Create new strategy Transformational innovation High risk-high return Existing market space Beat competitors Improve market share Improve existing strategy Incremental innovation Lower risk PPT 13- Barriers to Long-Term Success of Improving Existing Businesses Competitors response – fast and vigorous Hard to hide incremental innovations Market dynamics – easy to get behind & become less relevant Overcapacity PPT 13- The Innovator’s Advantage Competitors inhibited from responding Fear cannibalization Fear taking eye off existing business Competitors unable to respond Lack assets, competencies, culture etc. Innovator can create customer loyalty & authenticity PPT 13- Early Market Leaders Strategy Envision the Mass Market Managerial Persistence Financial Commitment Relentless Innovation Asset Leverage PPT 13- Managing Category Perceptions Focus at outset on attributes and functional benefits Labels help define the category—use them. Make your brand the exemplar (the best example of the new category) PPT 13- Creating New Business Arenas Creating a dramatically lower price point Technological innovation From components to systems Customer insights—unmet needs Market trends Niche markets Strategic Market Management 7th Edition – David Aaker PPT 13- From Ideas to Market Fatal Biases Inhibiting New Business Creation The short-term financial pressure curse The silo curse The curse of success The incumbent curse The commitment curse The size curse Making New Business Viable in Established Organizations Strategic Market Management 7th Edition – David Aaker PPT 13- In general, above-average earnings .
