Innovation and technology can provide tremendous leverage to a market campaign when properly used. However, it is important to time the introduction of a new technology to have the maximum impact on the market. Your marketing campaign should be designed to have its maximum impact on the competition before your competitors are able to respond with their own products.
As such, the basic effect of a product introduction based on innovation or new technology is to confuse your competitors as to how to respond to this new threat. Your objective is to exploit this opportunity for everything possible.
Cite example of Cannon with cartridge laser printer. Ability to sign-up Apple and Hewlett Packard which continue to dominate U.S. market.
There are five major strategic objectives that may be chosen for basing a market strategy upon innovation and technology:
- Force layoffs
- Liquidate inventories
- Cause competitors to alienate their suppliers
- Use cash reserves
- Disrupt activities
Force Layoffs by Competitor
By introducing a compatible product at a much lower price, cause the revenues of your competitors to drop sharply. This will force your competitors to respond by laying off portions of their workforces.
- Microsoft has been quite effective at this, introducing products at low prices, or giving them away, with the result that the revenues of its competitors are adversely affected.
Cause Competitor to Liquidate Inventories
Force your competitors to have to liquidate their inventories at a loss.
Cause Competitors to Alienate Their Suppliers
Force your competitors to alienate their suppliers and distributors.
Make Competitors Use Cash Reserves
Cause your competitors to eliminate their financial cash reserves.
- Filing one lawsuit after another is a favorite tactic that various semiconductor firms have used quite successfully. Intel in particular, has been quite aggressive in attempting to discourage x86 competition.
Disrupt Activities of Competitor
By a continuous series of events, force your competitors to devote their time to responding to your agenda.
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