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? Copyright 2010 John Wiley Sons Ltd Strategic Market Management Global Perspectives David A. Aaker and Damien McLoughlin ISBN: 978-0-470-68975-2 /college/aaker ? Copyright 2010 John Wiley Sons Ltd * Chapter Twelve Creating New Businesses PPT 12-* Blue vs. Red Oceans New market space Create demand Make competitors irrelevant Create new strategy Transformational innovation High risk-high return Existing market space Beat competitors Improve market share Improve existing strategy Incremental innovation Lower risk PPT 12-* Barriers to Long-Term Success of Improving Existing Businesses Competitors response – fast and vigorous Hard to hide incremental innovations Market dynamics – easy to get behind become less relevant Overcapacity PPT 12-* The Innovator’s Advantage Competitors inhibited from responding Fear cannibalization Fear taking eye off existing business Competitors unable to respond Lack assets, competencies, culture etc. Innovator can create customer loyalty authenticity PPT 12-* Early Market Leaders Strategy Envision the Mass Market Managerial Persistence Financial Commitment Relentless Innovation Asset Leverage PPT 12-* Managing Category Perceptions Focus at outset on attributes and functional benefits Labels help define the category—use them. Make your brand the exemplar (the best example of the new category) PPT 12-* Creating New Business Arenas Creating a dramatically lower price point Technological innovation From components to systems Customer trends Unmet needs Niche markets Evaluation - Real, Win, Worth It Keeping the Edge PPT 12-* From Ideas to Market Fatal Biases Inhibiting New Business Creation The short-term financial pressure curse The silo curse The curse of success The incumbent curse The commitment curse The size curse Making New Business Viable in Established Organizations ? Copyright 2010 John Wiley Sons Ltd * Strategic Market Management 7th Edition – David Aaker Strategic Market Management 7th Edi
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