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Innovation Versus Speed Strategy

In: Business and Management

Submitted By squeakyred
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Innovation versus Speed Strategy The approach companies take in making strategic decisions regarding such critical aspects including their business model and value chain have direct implications on their ability to sustain themselves over time. The accumulated research shown by Dr. W. Chan Kim and Dr. Renee Mauborgne in their best selling book Blue Ocean Strategy (Kim & Mauborgne, 2005) illustrate that new, uncontested markets are created by the decisions companies make over time rather than high levels of research and development (R&D) spending or intensive mergers and acquisitions (M&A) to acquire patents. The differences between companies who rely on innovation-based strategies relative to those that rely on speed-based ones are most prevalent during the decision of when and how to launch new products. This specific decision is in fact quantified as the single greatest and profit-generating event in the analysis completed (Kim, Mauborgne, 2004). Apple dominates innovation-based decisions and often looks to completely redefine a given marketplace through the sequence of product and service innovations developed. This mindset and resulting decisions within Apple to pursue a strategy of innovation and the development of an entire ecosystem for digital content including iTunes, iPods, and iPhones/iTouch devices has created a platform the company capitalizes on with each product introduction (Jonash, Koehler, & Onassis, 2007). The decision of which features within a given iPod to launch, how to specifically position its video capabilities and the offer of bundling for specific services on iTunes all relate to this innovation mindset. The computer peripherals marketplace is one marked by rapid product introductions and the continual development of new features. This is an industry marked by rapid technological change and a mindset of speed…...

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