Strategic innovation involves the creation
of growth strategies, new product categories or business models that change the
game and generate significant new value for consumers and the corporation.
Radical innovation establishes a new dominant design , and hence a new set of
core design concepts embodied in components that are
linked together in a new architecture
(Henderson, 1990).Incremental innovation is a change that builds on a firm’s
expertise in component technology within an established architecture
(Christensen, 1997). This type of innovation improves and refines an existing
design through improvements in the components. Firms
that innovate incrementally tend to do so just a little bit at a time. Think of
incremental innovation as cost cutting or feature improvements in existing products
or services (Leifer, 2000). Incremental innovation is more popular than
radical innovation not only because it
has reduced risk but also once a company has a product up and running it tends
to have built up considerable amounts of human capital and competencies so the
firm may as well devote time to making it better or reducing costs. Radical
innovation should be considered in changing the landscape of the organization
thereby paving way for long term growth.
Push and Pull innovation strategies
identify two solutions, which are presented as alternatives. A push strategy
refers to the development of processes that emanate from the company and go
towards the market meaning that supply is sustained by the company while a pull
strategy refers to processes that start from the market and go towards the
company. The two strategies are alternatives since they are founded on
different market assumptions that require different capabilities. Push strategy
requires knowledge of the market so as to plan in advance the corporate
activities necessary to perform all the processes while push strategies base
their competiveness on accumulated experience. On the flipside, in pull
strategies, the company does not have comprehensive knowledge of the market and
its players due to the dynamism and changeability of their needs and actions.
In order to minimise the cost of corporate activities in today’s competitive
market while maximizing the competitive advantage of each activity, companies
should identify how to combine the push and pull strategies e.g. in a clothing
company. The combination allows for the advantages of the two strategies to be
combined. Push strategy is applied to activities that can be reiterated while
pull strategies is applied to activities that make the company reactive and
Any organization that is interested
in sustained revenue and profitability growth over time should invest in both
innovation strategies, but most companies are drawn by the immediate payback of
push innovation thus pursue it only. Meanwhile, pull marketing helps grow the
client base which is fundamental in the long run. Smart companies, entrepreneurs
who intend to succeed in the long run, need to invest in both push and pull
marketing strategies in order to keep their sales pipeline full both for now
and for the future. Pull strategy is important for entrepreneurs since there
are often few ready customers early on to orient push marketing towards, so the
focus should be on using effective pull marketing at the beginning to grow the
numbers of future potential customers, and to learn as you go what some of the
successful elements of your pull marketing are that you might want to reinforce
or utilize in your push marketing later on.
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