Six Pathways to Growth and Value Innovation

Creating New Market Space

Creating new market space is critical for
smaller start-up companies as well as the
world’s largest companies.

Markets must be created and re-created

to keep sustainable, profitable economic
growth and competitive advantages.
Six Basic Approaches to Value Innovation

 Looking Across Substitute Industries

 Across Strategic Groups Within Industries
 Looking Across the Chain of Buyers
 Looking Across Complementary Product
and Service Offerings
 Looking Across Functional or Emotional
Appeal to Buyers
 Looking Across Time
Looking Across Substitute Industries

 Home Depot
 Southwest Airline
 Quicken
 SPSS
 Across Strategic Groups Within
Industries
 Group players in industry based on price,
performance, size, benefits etc.
 Find out if you can find the mix between them.
 Two most common dimensions for strategic
groups: Price and Performance
 Ralph Lauren (High fashion with low price)
 Swatch
 Lexus (High Performance with low price)
 Khaadi (High Fashion with Low Price)
 Chai Shay etc.
Looking Across the Chain of Buyers

1) The purchasers
2) The users
3) The influencers
These groups may overlap, but often differ.
Cerelac Purchaser, Buyers and influencers are
different.
Safeguard, Taurus Securities, Canon, Photoshop,
Philips Alto bulb with low mercury promoted to
CFOs rather than purchase deptt.
 Looking Across Complementary
Product and Service Offerings
 Barnes and Nobel (Liberty books following)
 Adding services that adds value
 Corporate lounges in banks
 Orient advertising
 Play pens
 Baby sittings for theaters and shopping malls
 Caltax washrooms
 Gym trainers
 Coffee machines to retailers
 Coke fountains to restaurants
 Looking Across Functional or
Emotional Appeal to Buyers
 Functionally oriented industries (Raw
material) Emotionally oriented industries
(Fashion)
 Starbucks – Third Place
 Bodyshop
 Zippo
 Looking Across Time

 Toyota Announcement
 Saudi Arabia
 Shifting advertising media