ENTRY 1: WEEK 17
The industrial life cycle model has been changing, and new trends have been emerging over the decades. The rate of which product innovation is growing through the number of products per number of firms in the industry profit margin is directly proportional to the rate of process innovation. Hence, with its inverse proportion to the fluid, transition, specification and discontinuities, Innovation, therefore, flows in the same direction with product development, entry of followers, creation of market. Through the strategy of order of entry, it stated that the earlier the company getting into the market, it would be better for it to develop the better, even though the company is a follower. By studying the Apple’s case study, pioneering brings advantages and disadvantages to company and understanding the key internal and external factors that moderate the degree of pioneering advantages are vital keys in innovation. For example, the Apple product has gone through the above sequence of development in innovation.
In the following part, some examples of equipment that have gone through a series of transitions of development over the years will be considered. The Apple I was released in 1976, the Micro Instrumentation Telemetry System (MITS) released in 1975 which was the first to produce personal computers. Then came the Macintosh release in 1984, IBM released its original PC in 1981. There was also the release of Graphical User interface (GUI) used in Macintosh. Through the analytical research of Newton, there was a positive result of the first release of Newton Message Pad discovered in 1993 and later on discontinued in 1998. The PowerMac G4 Cube was also released in 2000 and discontinued in 2001 which it aimed to create a market for boutique computers. For example, the Modern Museum of Art located in New York purchased a unit for its artifacts collection. The above examples show that pioneering brings huge benefits to the company and it is important for the company to keep on pioneering to create competitive advantage. However, it brings cons to the company as well. On the upside, it creates product awareness since customers familiar with certain brands instead of other brand and a repeat purchase is more likely to happen, which also create brand loyalty overall. On the downside, pioneering create cost for the company. Besides, the world is changing every day, the technology and the customers’ taste keep changing.
Improve in technology changed human’s behavior, social media has become one of the main way for business to do advertisement. The number of users will affect the amount of benefit that user can take. The more the users, the more the benefit is.
Failure Rate of Pioneers
It refers to the situation where the products under a brand name of a pioneer eventually reaches ends of sales. For a total of 50 product categories surveyed, the failure rate of market pioneers is 47%. The rate is similar for categories and types starting before and after World War II (Scribd, 2018).
Survival Rate of Pioneers and Followers
In innovation, the rate of survival of pioneers and followers can be considered in terms of the productivity period of their products. A survey reflected that for over 150 pioneers and 250 followers, only 60 and 40 of them respectively can survive for ten years. (Robinson and Min, 2002)
ENTRY 2: WEEK 19
Developing Innovation Strategy 4: Appropriating the Benefit from Innovation
How can organisation protect their intellectual developments?
Innovation has led to the development of different more efficient and effective techniques over time, which ought to be managed and protected such that the products and intellectual production methods cannot be imitated by outsiders. The protection methods include generic protection strategies and legal protection strategies, which can be further classified into various segments. For instance, in generic strategies, there are the secrecy tactic, the time of leading, complexity standards of the products, curve learning, and the know-now tactic. On the other hand, legal protection strategies can further be classified to Copyrights, Design Rights / Registered Designs, Trademarks, and Patents.
It is essential to consider the time it may take for competitors to copy the product, such as Industry/product dependent, High Pharmaceuticals, Aerospace, Medium Automotive, Electricals, Low food, telecoms. In secrecy, there should be effective measures developed through process innovation such that products can be reverse engineered. The best example of confidentiality is the Coca-Cola recipe. Through the protection strategy which allows uniqueness when considering the internal or external shape or configuration of a product, it helps to stop others from copying (Sapience.org.uk, 2018). The term “patentable” refers to the idea of a technical character that relates to products, devices, and processes and has novelty, inventiveness and industrial applicability.
Protection is the overall visual appearance of a product or a part of a product that protects a three-dimensional product or two-dimensional ornamentation alone which must be new and different from the presence of other that is already designs and can last for 25 years (Anon, 2018). Legal protection takes factors that make the product and company unique into consideration, such as colours, logos and shapes. Registration body is required pay a fee to register at Intellectual Property Office.
ENTRY 3: TUTORIALS
Internal and external factors influencing pioneers’ performance
Pioneering advantage can be created by three main ways: Technological leadership, pre-emption of assets and buyer switching costs. (Lieberman and Montgomery, 1988) Keep developing technology can ensure the company to have the pioneering advantage compare to other firms in the market. By increasing the switching cost, it creates the brand loyalty.
The external environment that will impact the pioneer’s performance over the others may include resources, competence of the relative followers of the pioneer, the pace of market growth and the pace of technical progress. When pioneers possess both core and complementary resources at the same time, they are more likely to survive than just possessing core resource unless if potential followers are possessing nothing.