how can you say that innovations were the basis for growth in many sectors.?
Answers
Most companies focus on matching and beating their rivals. As a result, their strategies tend to take on similar dimensions. What ensues is head-to-head competition based largely on incremental improvements in cost, quality, or both. W. Chan Kim and Renée Mauborgne from Insead study how innovative companies break free from the pack by staking out fundamentally new market space—that is, by creating products or services for which there are no direct competitors. This path to value innovation requires a different competitive mind-set and a systematic way of looking for opportunities. Instead of searching within the conventional boundaries of industry competition, managers can look methodically across those boundaries to find unoccupied territory that represents real value innovation. The French hotel chain Accor, for example, discarded conventional notions of what a budget hotel should be and offered what most value-conscious customers really wanted: a good night’s sleep at a low price.