Supply-pushed innovation
Supply-pushed innovation is a concept where innovations are driven by the capabilities and resources a company already has, rather than being driven by market demand. Companies that use supply-pushed innovation focus on developing new products or services based on their existing expertise and technology. This approach can lead to the creation of unique offerings that set the company apart from its competitors.
One example of supply-pushed innovation is Apple’s release of the iPhone. Apple leveraged its expertise in hardware and software development to create a revolutionary product that changed the way people use smartphones. The iPhone was not developed in response to market demand, but rather as a result of Apple’s internal capabilities and vision.
Another example is Tesla’s development of electric vehicles. Tesla saw the potential for electric cars and used its expertise in battery technology and engineering to create high-performance electric vehicles that have disrupted the automotive industry.
Supply-pushed innovation can be risky, as there is no guarantee that consumers will embrace the new product or service. However, companies that successfully implement supply-pushed innovation can gain a competitive advantage and drive growth through differentiation.
- Pros of supply-pushed innovation:
- Allows companies to leverage their internal capabilities
- Can lead to the creation of unique offerings
- Can result in a competitive advantage
- Cons of supply-pushed innovation:
- Can be risky if there is no market demand
- May require significant investment in research and development
Overall, supply-pushed innovation can be a valuable strategy for companies looking to differentiate themselves in the market and drive growth through innovation.