Business innovation

We’re studying or working in business fields. So, I’m sure that everyone has heard about
market leader and followers, what a market leader is and what a follower is. But do you
know how to distinguish between a market leader and a follower? What are the factors to
become a market leader in a certain field of business? I’m sure you all heard about Apple
company - one of the most innovative companies in the world with its famous product
(iPods, a small digital music player that you can easily find in everywhere, in school, in bus
stations, in waiting room , or so on), and the person has made the success of Apple is its
CEO - Steve Jobs. He has a famous quotation about innovation that is: "innovation
distinguishes between a leader and a follower". How can innovation distinguish between a
leader and a follower? That is the topic of my talk today. First, I’d like to repeat the
definition of market leader and followers, then I'll tell you about innovation and explain how
innovation can distinguish between a leader and a follower, and last, I'll give you an
interesting example of business innovation.

OK, now, let’s move to the first part, it’s about market leader and followers.

1. A Market Leader is a brand, a product, or a firm that has the largest percentage of
total sales revenue of a market. A market leader often dominates its competitors in
customer loyalty, distribution coverage, image, price, profit, and promotional
spending.
2. Followers are firms that are happy to follow the leader in a market place without
challenging him. It is extremely difficult for a follower to take market share from a
leader.

Take, for example, in cellphone market, NOKIA is the leader, and other brands
such as LG, Sony Ericsson, Motorola, or etc. are the followers.

These are definition of market leader and followers, how can innovation distinguish between
them? Now we move to the second part, which is about innovation.

1. Innovation is the conversion of new knowledge into new products or services to

satisfy customers. Innovation involves development of new ways of doing
business, new business models, business application of technology and
communication, new management techniques, and so forth.
2. So, how can innovation distinguish between a leader and a follower? The answer
is: A leader designs and markets innovative products, while followers try to copy
them. We do our business in the global market where innovation is the most
important factor in building and sustaining our competitive advantage. We come
up the market first with new idea, new product that meets the need of almost
customers. Therefore, we get the market, get the brand, and we become the market
leader.
To make it easy to understand, now I‘d like to share to you a case study of a business
innovation. It’s about YouTube broadcast company.

1. Who came first?

Many years ago, from the booming of Internet, people used to use Microsoft’s
NetMeeting for voice chat and live video with a simple Webcam. However,
there’s still no instrument or device that help people to capture their own videos
and store them online, and then send them to someone else they want directly
through the Internet. But, YouTube can do that.
2. The innovation of YouTube?
First, YouTube founders - Chad Hurley, Steve Chen, and Jawed Karim - had
realized that online video is the new way to communicate in the modern society,
and they focused on FREE video service created by the people for the people.
Second, YouTube focused on providing the best experience for users interested
in uploading, watching and sharing videos. They made it as easy as 1, 2, 3 to
upload and share a video; easy to browse and find; and easy to download to
computers.
Finally, YouTube created key partnerships with various Music and Broadcast
players in the industry, including Sony, Universal, Warner Bros, and more. From
this way, YouTube brings fresh contents from hundreds of broadcast channels for
people around the world to watch online at their convenience for FREE.
This innovation has made YouTube come from zero to1.65 Billion Dollars in
market value in less than two years from founding and in less than one year from
launching its product, and becomes the leader in online communication market.

Today, we’re living in the age of globalization where everyone can be our competitors in
doing business. Here, innovation is the most important factor in establishing and maintaining
our competitive advantage. It creates the differences between the leader and followers. You
can be the market leader if you are the one who’s constantly up with new ideas, new
products, or new services. In whatever industry you’re in, your constant innovation in
alignment with your mission will keep you ahead of the park, and from this, you will be
successful.

“There are no dreams too large, no innovation unimaginable and no frontiers

beyond our reach” - John S. Herrington