Knowing a Winning Business Idea When You See One Essay
In their article, the authors offer an approach to introduce innovative and new products or technologies to the market in a way that assures that they are accepted by the potential customers. According to them, a product can be the most innovative and might be equipped with the best technologies, but still fails in the market. That is why they recommend managers to first look at utility. It would be essential to create a product or service that provides an exceptional utilitly for the buyer.
The authors present the “Buyer Utility Map“ which is supposed to enable managers to determine the different utility from existing products.
I as a manager can understand the levers and stages they cover to introduce a new product to the market, but however, I think the approach is highly theoretical and very narrowly minded. Basically, a potential buyer would first think of the need and utility of a product. That is, there has to be demand for this product and if there is, then there as to be a fair price to it or at least the buyer must accept the price and the value of the product or the service.
To be honest, I do not know whether a customer of Starbucks Coffee really thinks of the right disposal and/or the production of the purchased item.
Obviously it is important to figure out whether a product harms the environment, but if it would not be it should never reach market maturity. That is why I believe the questions the authors undertake are relateively simple and they definitely make sense, but I doubt that they will help to introduce an innovative product to the market. However, I do agree to the “Strategic Price“ idea they do. It is certainly true, that in order to sustain or create a loyal customer base, it is of high important to provide the buyer the feeling of a fair price balance, i. e. a buyer will not come back if he feels that he got “ripped off“.
The authors present here the “Price Corridor of the Mass“ which basically describes low, medium and high prices according to the protection of their product and the given service. I do not agree to this at all. There are many more factors that influence the price scheme of a product such as competition, easiness to imitate, development cost and just the value a product has for a buyer. And of course there is still the value of the brand itself. Especially for instance in the luxury brands market, a firm might be able to charge almost any price just because buyers believe that the product has this value.
For their point of the adaption in the market, I believe it will always be the buyer who decides what he wants and there is little firms can do, apart from having an open and transparent communication philosophy in the firm towards employees, business partners and the general public. All in all, this article enriched my thinking of introducing innovative products to the market but i doubt that (as they state) this framework will make innovation much easier and “plannable“ in business.