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Innovation Manage

In: Business and Management

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Timing of entry 1. Current Market situation
Analysis of the current market situation determined that the technology developed by EXIJO is not entirely innovative. Similar product prototypes already exist (Qiwireless.com). There are two dominant players in the market: the Alliance for Wireless Power together with The Power Matters Alliance (A4WP and PMA) and Wireless Power Consortium (WPC), which are doing R&D in the field of wireless technologies. Each organisation has its own wireless charging technology, Rezence-based and Qi-wireless charging technology respectively. There is also WiTricity Technology presented by a company with the same name that is also part of the PMA. While the first alliance pays more attention to the application of wireless charging technology for the outside home and office usage, the WPC is promoting the technology for the inside home application. This difference is due to specialisation of the companies that are in the alliances. One of the most important members of the WPC is Philips, it uses the Qi-wireless charging technology for the kitchen appliances. However, the product has not been launched yet.
The main difference is that Philips is aimed at creating a fully-wireless kitchen appliances rather than concentrating only on blenders and mixers. Another difference is that the inductive power source of the existing Philips prototype is built into the kitchen’s countertop just directly underneath the particular piece of equipment compared to the EXIJO’s Hub that is placed on the counter and can turn on the kitchen appliances within one metre. One of the EXIJO’s benefits is that the charging equipment does not need to be mounted into the countertop, thus avoiding expensive work on converting kitchens. 2. Suarez & Lanzolla’s (S&L) model analysis
In order to evaluate the most appropriate time of entrance we have to identify the speed of the market and technological changes. (Suarez & Lanzolla’s model).
An Article dated 29 Jan 2013 in the blog “Smartplanet” claimed that this time wireless charging technology had only been started being developed for the use of mobile phones. The article states “it could have applications for large-scale appliances and could be embedded in surfaces ranging from car dashboards to household floors to kitchen countertops.” A year later, Corda (April 20, 2014) was already talking about a fully wireless kitchen appliances. Therefore, it is fair to assume that changes in technology in the sector are quite fast.
The market for the wireless charging technology is also characterised by relatively high speed of changes expected to grow from a $216 million in 2013 to $8.5 billion in 2018 (IHS technology research). However, the market adoption of the technology is slow due to several factors such as limitations of induction technology that allows only charging one item at a time and there is a war of standards between industry groups. We should consider both the wireless chargers and kitchen equipment markets.
The Market for mixers and blenders is quite mature and stable and the product for customers is only a variation of the conventional kitchen appliances. Over time, neither design nor main functions have changed significantly. Therefore, the changes in the market are characterised by slow speed. | Pace of market adoption | * | Slow | Fast | Pace of technology evolution | Slow | Calm waters | Market leads | * | Fast | Technology leads | Rough waters |

According to the S&L model, EXIJO faces the technology leads situation. This situation involves high financial risks in the short term. In turn, the fast technological change will provide later entrants with competitive advantages. The company should establish and support R&D department and seek collaboration with Venture Capitalists, as the company is relatively new and small. The company should consider the fast-follower strategy rather than 1st mover position as it is hard to build first mover advantage for such a small company with no obvious innovation advantage and with lack of investments. Therefore, the company should follow Active Innovative strategy as the company has a small scale, therefore quite flexible. As company’s technology is fully developed this would allow the company to be one of the fastest early followers. 3. Other factors and recommendations
Other factors that may influence the launch of the product could be also divided into two parts: market-related and technology-related factors.
Market-related factors: Porter’s five forces
To analyse market-related factors, we used the Porter’s five forces method.
Bargaining power of consumers 1. How certain are customer preferences
The wireless charging market in the earlier stage of development. Therefore, specific consumer preferences are not identified yet (Porter, 2014). However, today’s consumers have more than one gadget that need to be charged, it is not that convenient to have wireless charger only for one piece of equipment (ibid).
Therefore, before launching the product it is important to conduct field as well as secondary research regarding consumer preferences. Focus groups may be helpful in order to identify customer perception of the product and viability of product launching. 2. How much improvement does the innovation provide over previous solutions
The degree of improvement is not explicit for the consumer as their main focus is on the product’s main function rather than the way it is charged. The company can improve this perception by undertaking advertising campaign in order to educate customers. The company should focus on increasing customer awareness about generic product and product benefits by BTL and ATL advertising.
Threat of new entrance and rivalry among existing firms, threat of substitute products 1. Threat of competitive entry
The expected level of competition is significant due to development of similar technology in the area. However, high competition and high R&D costs form barriers to entry for new entrants.
As our client lacks reputation, it is important to undertake advertising campaigns by focusing first on the niche market (pic. 1) Geographic | Country | UK | Demographic | Gender | Female | | Age | 25-35 | Psychographic | VALS Framework | Experiencers | | Lifestyle | Design-oriented, tech-oriented | Socioeconomic | Occupation | Professional | | Income | Middle |

Advertising campaigns should highlight advantages of the product such as design and remote charging ability as well as convenience during cooking process. 2. Ability of the firm to withstand early losses
As our client is a young new developing firm, it will face losses in the early stages of operations. Therefore, we recommend seeking help from Venture Capitalist firms. It will also provide the company with resources to accelerate market acceptance.
Bargaining power of suppliers 1. Lack of firm’s reputation to reduce the uncertainty of intermediaries
The company’s reputation is not yet established. The company may establish a department that would be responsible for PR activity. The company should also try to take part in development of the technology by joining one of alliances. It is important that before entering into any alliances the company should protect all innovations with patents. In order to avoid high cost of distribution, the company should start with on-line sales.
Technology-related factors 1. Does the innovation require enabling technologies and are these technologies sufficiently mature?
The product has a well-developed powerful wireless charging hub. However, as it was mentioned above, consumers prefer to charge several items at same time. Therefore, in the near future the EXIJO’s principle of charging each item separately may become outdated and would require additional enabling technologies allow charging more them one piece of equipment. The company may consider joining one of the alliances in order not to fall behind competitors. 2. Do complementary goods influence the value of the innovation and are they sufficiently available?
The company does not have to deal with this risk, as the product does not require complementary goods. 3. Is the industry likely to experience increasing return to adoption?
The company may face problems from two directions: from the market for wireless charging systems and from the traditional kitchen appliances market. While the dominant design of the mixers and blenders is established, the dominant design in the market for wireless charging systems is still under uncertainty. By joining one of the alliances this may diminish the risk of developing high quality technology that fail just due to not sufficient market coverage. 3. General recommendations
To summarise all the recommendations regarding the timing of entry. The company should not use first-mover advantage, rather be an early follower using active innovation strategy. In order to overcome technology-related and market-related threats, we recommend establishing a department or hire a professional responsible for the PR and advertisement activity, seek cooperation with Venture Capitalist and try to take part in the development of the dominant standard of the wireless charging system by joining the alliances.

http://www.smartplanet.com/blog/the-report/why-wireless-charging-is-bigger-than-you-think/ http://fortune.com/2014/07/29/within-grasp-a-world-without-wires/ http://www.qiwireless.com/wireless-power-consortiums-wireless-kitchen-appliances-concept/

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[ 1 ]. Strategic Business Insight’s (SBI) VALSTM framework is one of most popular commercially available classification system based on psychographic measuremen

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