NOT EVERY BUSINESS OFFERS SOMETHING NEW
Not every new business offers a radically different and innovative core product or service. There are certain core products and services that are in existence today which will continue to be in demand.
Because there is a need, many new businesses will offer a similar product or service and go head to head in the competitive market place with existing and, in some cases, well established competitors.
The question then becomes how to win in an overcrowded competitive field? In most cases, it is very difficult to make radical changes in the core product or service that is being offered. Some new businesses try to compete on price, undercutting existing competition and hoping to make up the difference in volume. Unfortunately price cutting to gain a foothold in the market is a bad idea.
In his new book, The Power of Little Ideas, David Robertson offers another way to compete without having to cut prices, or drastically change the product or service being offered.
His method consists of multiple, diverse innovations around a central product or service that makes the product more appealing and competitive. “By diverse complementary innovations, we mean that they should fall into a wide range of business categories, such as pricing, marketing, operations, sourcing, and partnerships. Likewise, the innovations should appear in a host of different forms, such as auxiliary products, support services, and social media activities. “
The book cites many examples of how the fortunes of a product or service can depend less on the product or service itself than on a group of small, supporting innovations around it.
The beauty of this concept is that the main product or service is not changed. The small innovations that are developed around the product or service are usually a low risk factor and also a low cost factor. Robertson cites several examples where the innovations surrounding the product made such a difference in the promise to the end user that the cost of the product actually was raised and the company still won over existing competition.
In my opinion, this new way of thinking opens the door for new business owners to compete and to win over existing companies that offer the same product or service.
Let’s have some discussion on this topic. Start a conversation on BizQuack or call me to set an appointment.
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