Product Innovation – evolutionary & revolutionary types

Technological innovation is both an evolutionary and a revolutionary process.

Evolution is essentially a gradual and cyclical process whereby more successful offerings displace less
successful ones – the survival of the fittest.

However, this cycle may be punctuated by dis-continuities which have a major impact on the process –
these are the revolutionary innovations.

A consequence of this is that all phenomena have a Life cycle.

Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited
Strategic competitive options for organizations
Product
Existing New

Market New product In competing with one

Existing penetration development another, firms have only a
limited number of
Market

strategic options available

to them. These were
identified by Igor Ansoff in
Market a Growth Vector Matrix.
New development Diversification

Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited
 Strategic competitive options for organizations
Product
Present New

Market Product development Studies have shown that the most successful
Present penetration companies pursued strategies of market
penetration, product development, and
market development simultaneously to
Market

maintain competitive advantage. Joint

product and market development is the
Joint Product & toughest to achieve because of the fact that
Market
New both factors deciding the quadrant are NEW.
development Market Development

Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited