Finding the Sweet Spot Between Mass Market and Premium

Harvard Business Review

Rather than starting with their own portfolio needs and barreling ahead—a supply-driven strategy that companies rarely seem to escape—successful companies start with the consumer’s mindset and use that lens to identify market gaps. For example, Breyers, the ice cream brand, recognized that the gelato market was booming, but that super-premium gelatos were selling for 2.5

At the High End, Reaching a Mass Market

Harvard Business Review

It is inclusive, an "art fair for the masses". Never before had live productions been instantly accessible to mass audiences beyond the confines of the theatre and at price point of a movie ticket. The real luxury innovators don't look for opportunities among the usual rich suspects.

Corporate Entrepreneurship: Turn Irony into Opportunity

In the CEO Afterlife

Corporate giants dominated markets and gobbled up competitors; along the way they failed to cope with rapid change. Their competitive edge eroded because the people at the top, who considered themselves the corporate brain, failed to adapt or innovate.

Innovation's Hidden Enemies

Harvard Business Review

That's partly because, as we all know, organizations and cultures rebel against innovations, especially when they are first conceived. Nespresso took off when it stopped targeting offices and started marketing itself to households. If Nestle had gone only by market research — usually innovation's first enemy — the concept would never have gotten off the ground. That's why Brabeck brought in Yannick Lang, a 33-year-old marketer from Philip Morris.

India Remakes Global Innovation

Harvard Business Review

Dr Reddy's plan is to leverage Chirotech's scientific capabilities to optimize drug development processes, thus lowering manufacturing costs and speeding time-to-market. In prior blog posts, we have described how Western multinationals such as Xerox and GE are embracing polycentric innovation by sourcing more R&D capabilities from emerging markets such as India and China and integrating them into a synergistic global innovation network.

How I Discovered My Leadership Secret Weapon

Terry Starbucker

As another calendar year drew to a close, while our cable TV company was buoyed by better sales numbers as a result of new service activations and stepped up marketing, we were still struggling to reverse a downward overall trend.

The 5 Habits of Mind that Self-Made Billionaires Possess

Leading Blog

Imagine what Atari might have achieved if Steve Jobs had stayed there to develop the first mass market personal computer. Focusing on the competencies of today is exactly what causes companies to get stuck in the markets they serve and the products they deliver now, with little eye for the shifts and innovation they will need for tomorrow. Self-made billionaires think differently than most of us do.

The Entrepreneurial Corporation: Oxymoron? | In the CEO Afterlife

In the CEO Afterlife

The giants dominated markets and gobbled up competitors; they also failed to cope with rapid change. Their competitive edge eroded because the people at the top, who considered themselves the corporate brain, failed to innovate. Marketing. In the CEO Afterlife. Main menu Home.

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The $2,000 Car

Harvard Business Review

For example, GE developed an ultra-low-cost ultrasound for rural China which is now marketed in over 100 countries. Logitech developed an affordable mouse for the China market which sells for (the Chinese equivalent of) $19.99 Deere & Company developed a small tractor, the 35-horsepower Krish, built and priced specifically for the India market, competing head on with the Indian market leader, Mahindra & Mahindra. Reverse innovation will become more and more common.

Microsoft's Kinect Misses the Mark

Harvard Business Review

It's rare that a technological innovation creates debate both in the Anthony household and among my colleagues, but Microsoft's Kinect had done just that. The core issue: did Microsoft over-stretch in its effort to transform the gaming market? Microsoft hopes the $150 device one-ups Nintendo, which created a new market of gamers with its simple-to-use Wii system and console. Disruptive innovation Innovation Microsoft

Why Elon Musk’s New Strategy Makes Sense

Harvard Business Review

The second installment moves Tesla beyond the traditional car market, with a plan to reconfigure our cities, energy systems, and our impact on the environment. Tesla’s initial strategy began like a start-up: to build a minimum viable product to test the market.

Instead of Optimizing Processes, Reimagine Them as Platforms

Harvard Business Review

Surely this cheap, customer-centric, and data-driven innovation would impress the client. To make customers measurably happier, optimization mattered less than innovation. Their optimization strengths had become innovation weakness. Challenging people to visualize processes as platforms completely changes how trade-offs between innovation, optimization, and user experience are debated and discussed. Innovation Technology Design Digital Article

Know the Job Your Product Was Hired for (with Help from Customer Selfies)

Harvard Business Review

“But some of these photos were so far from that wavelength, it’s really helping us kind of realign with the mass market.” Customers Innovation Market research Digital ArticleIn what world is a Snickers bar competing with a kale salad?

Why Dominating Your Category Can Be a Flawed Strategy

Harvard Business Review

Of the many contributions Jack Welch has made to business wisdom, one of his most famous was “Be #1 or #2 in every market.” General Mills actually grew from #2 to #1 in market share the last few years. ” The first problem is it encourages managers to focus most of their attention on market share and not enough on the category itself. Being number one in a declining market isn’t a great place to be. steven moore for hbr.

Netflix and Why the Future of Streaming Looks Like Old-School TV

Harvard Business Review

This makes it easier to do what Netflix was built for: experiment with the long tail rather than go for mass-market hits. Strategy Innovation Media Digital ArticleCSA Images/Printstock Collection Vetta/Getty Images. Netflix hit the industry with some bombshell moves this month. First, it announced that it plans to spend $8 billion on original content next year (including on 80 new movies). This is far more than any other online player.

The Hidden Power of Mundane Ideas

Harvard Business Review

The same holds true for consumer focus groups, innovation contests, and more recently the use of social media sites to solicit feedback from consumers. The TV included many of the teens' suggestions, but didn't catch on in the mass market. These and a few of the other popular sentiments seemed so obvious, but were being overlooked by the brand in efforts to build the next innovative product. That's often where the real innovation lies.

RIM Isn't Dead Yet

Harvard Business Review

Since Apple entered the mobile phone market, RIM's financial situation has deteriorated and its market capitalization has plummeted by almost 95 percent since its mid-2008 peak of more than $100 billion. RIM's offering is well suited to the realities of these markets.

The Secrets to Clay Christensen's Success

Harvard Business Review

His disruptive innovation theory, for example, says that incumbents that listen to their best customers — when their offering has already overshot the mainstream — leave themselves susceptible to attack from companies armed with simpler, more affordable solutions. When I first met Christensen he was certainly well known due to the 1997 publication of The Innovator's Dilemma , which won the Global Best Business Book award. Innovation Managing yourself

The Real Reason Uber Is Giving Up in China

Harvard Business Review

In a group photograph, 30 CEOs with a combined market capitalization of $2.5 It is true that Kalanick consistently called China the most important market for Uber. Uber truly wanted to succeed in its fastest-growing market, one where taxi drivers outnumber their U.S.

Hybrid Business Models Look Ugly, but They Work

Harvard Business Review

When the Microsoft Surface first appeared, many critics panned it as a clumsy move into hardware — a device that was stuck in the middle, a half-step behind the hot market for tablets and only a half-step beyond the dying market for PCs.

In Product Development, Let Your Customers Define Perfection

Harvard Business Review

In an era of high-stakes innovation, there is no clearer illustration of how to develop new products the right way (and the wrong way) than a tale of two car companies. When the Cayenne came to market in 2003, it was an instant hit. Innovation Digital Article

Don't Draw the Wrong Lessons from Better Place's Bust

Harvard Business Review

While every other player in the electric car space was focused on innovating individual pieces — vehicles, batteries, charge spots — Better Place''s strategy was unique in innovating the larger puzzle to deliver an affordable drive-anywhere, anytime solution. Note to Tesla owners: you are not the mass market). Since resale value ranks high for mass market buyers, this has all the makings of a deal breaker. Innovation Strategy Transportation

Beyond Mass Customization

Harvard Business Review

Rather, they focus on markets (anonymous agglomerations of customers) rather than on any real, living, breathing individual customer. Most recognize that there are no truly mass markets any more. But we must go beyond looking at market segments and niches to embracing the truism that every customer is his own market. Multiple Markets Within. After all, what could possibly be next after recognizing that every customer is his own market?

Is the Drone's Potential Being Shot Down Too Fast?

Harvard Business Review

There is another reason, too, that the drone market is set to take off. Thus, mass-market drones clearly hold potential for what Paul Nunes and I call "big bang disruption." Government Innovation Technology

Seeing Robots Everywhere

Harvard Business Review

Seeing a potential revenue stream to fund more research robot development, the team set up a company, BeatBots , to make a very pared-down version with the same look and feel available to the consumer market. It's not easy to deliver sophisticated robotics at a $40 price point , and by managing to do that, they have a toy with mass market sales. Innovation Tech industry Technology

IBM at 100: How to Outlast Depression, War, and Competition

Harvard Business Review

At its 100-year milestone, IBM shows us what it takes to outlast depression, war, and intense competition in order to remain a market leader in the midst of ongoing technological innovation. By 1955, IBM's revenues were $564 million and it led the world market in making computers. This innovation came to market in 1964 and quickly became a smash success, setting the standard for the industry and greatly expanding computer use around the globe.

Piecing Together the Tesla Strategy Puzzle

Harvard Business Review

From the start, the mass-market acceptance of battery-powered cars has faced four great obstacles: The limited range of the batteries; The time it takes to charge the battery packs; The need to emplace a sufficient number of battery stations; The requirement for owners to replace the battery pack, at huge cost, after several years of use and corresponding degradation. Business models Growth strategy Innovation ArticleThese days, Tesla is the darling of the automotive world.

Your Business Doesn’t Always Need to Change

Harvard Business Review

By now, the idea that organizations must adapt in order to maintain both relevance and market share in a rapidly changing world is so ingrained that it’s been reduced to pithy sayings. The recent failures of mass market retailers Sears and J.C. The diluted management focus, coupled with the car’s poor sales, hurt the brand and allowed competitors — especially luxury imports — to gain market share. Change management Disruptive innovation Strategy Evolve or die.

Is Timex Suffering the Early Stages of Disruption?

Harvard Business Review

In the early days of an innovation, it''s hard to tell whether we are looking at the future or just another blip on the screen. As we know, stories are fast becoming the new coin of the marketing realm. At this point, the innovation is not only beneath our interest.

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Publishing's 169 Years of Disruption, Told in Six Freakouts

Harvard Business Review

No, not World War II, but rather the introduction of the first mass market paperback. Maybe it's a good time to dredge up a chestnut from Ted Levitt's classic HBR article, "Marketing Myopia." Disruptive innovation MediaCharles Dickens was killing it in 1842. The 29-year-old father of four (he would eventually be blessed with six more children) and already-famous author was writing up a storm and squeezing every penny he could from each word he wrote.

To Stay Ahead of Disruption's Curve, Follow Lead Users

Harvard Business Review

Recent corporate history is littered with successful established firms who failed to manage disruptive innovation even with full knowledge that it was coming. Unfortunately, however, customers for firms serving the mass market, by definition, have largely of middle-of-the-road needs. They are not "lead users" — users who today want new solutions to leading-edge needs that will disrupt firms serving the middle of the market tomorrow. Apple Disruptive innovation

The $300 House: The Marketing Challenge

Harvard Business Review

Today, Seth Godin examines the challenge of marketing to the world's poor. Its success will depend on the ability to create a market for the idea. Acumen creates these markets using patient capital. As a result, it's extremely difficult to sell innovation to this consumer.

Prototype Your Product, Protect Your Brand

Harvard Business Review

Designers and entrepreneurs have been experimenting with live prototyping — putting unfinished product ideas in the context of real markets and real customer situations — for years, and now bigger businesses have begun to catch on. Many executives, eager to avoid over-investing in the wrong ideas, are intrigued by this approach, but they’re leery of putting unpolished products and services out in the market. Is quality essential in your market, or simply a nice-to-have.

10 TED Talks to Help You Reimagine Your Business

Harvard Business Review

It turns out that some of our best thinkers and innovators are introverted. Leading business and marketing practitioner Seth Godin imagines a world where the mass market dies, where mediocrity holds no economic value. While much of Godin's thinking has come to bear true in our social media-induced world, this TED Talk will get you thinking differently about where you spend your marketing dollars. Innovation StrategyIt's happening right now.

The Internet of Things Needs Design, Not Just Technology

Harvard Business Review

applications pushed technology to address B2B market requirements. Increasingly, the pull of user experience will drive market demand, and product design will be critical to getting consumers to adopt offerings in this new IoT 2.0

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Does Your Company Come Across as Too Male?

Harvard Business Review

He had no idea that the ad they’d just run to launch their latest mass-market device was so completely male-oriented. After all, Red Bull and P&G were strategically going after a market segment they had chosen to focus on. jennifer maravillas FOR HBR. “Oh no!”

How Separate Should a Corporate Spin-Off Be?

Harvard Business Review

Should the new activity have a separate stock market listing or separate funding? Shell’s preference for a strategy of vertical integration proved a disaster in aluminium, and BAT’s belief in market share was as damaging when the company entered financial services.

Your New Hit Product Might Be Underpriced

Harvard Business Review

Some products are truly innovative but stay walled up too long in R&D and then are released to market when they are no longer unique. Playmobil priced its play set far too low, which allowed customers to make money from it in the resale market.

Arkes 10

What U.S. CEOs Can Learn from GM’s India Failure

Harvard Business Review

Like its American compatriot Ford Motor Company , GM’s market share in India has always been in the single digits, but recently Ford has reported rising monthly sales of 36% in India. 1 — Consistent Leadership Over Time Matters in This Market. Having local autonomy is key to succeeding in India, since its market structure is fundamentally different from the West’s and therefore demands extreme customization.

To Spur Growth, Target Profitable "Prosumers"

Harvard Business Review

For example, UnderArmour provides athletic gear used by professional athletes to the masses. They also are finicky about marketing ("how you market it").sometimes sometimes the badge value comes from the product not being mass marketed, but rather endorsed by those in the know.

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The Clean-Tech Economy at the Base of the Pyramid

Harvard Business Review

companies produce the batteries required for price-competitive electric vehicles that can truly shift the market? Perhaps it is here, and not in Americans' two-car garages, where the large early market for advanced battery technology resides. based solar energy companies produce systems that compete on price, opening up huge new mass markets for renewable energy? The Chinese now account for 80% of this market and will soon take it global.

Consumer Warning Labels Aren’t Working

Harvard Business Review

This practice leads highly cautious consumers to lump low-risk products in with mass-marketed products that actually merit such a warning and encourages many others to simply ignore warnings. Going forward, we must remember that in our time of revolutionary technological progress, almost any innovation brings minor risks along with its benefits. A few innovations impose major risks, or even worse. Warning labels are everywhere.