meanwhile, in the disk drive industry, each new generation of technology has caused the market leaders to stumble and new companies to take their places. when does innovation lead to radical changes in market leadership, and when does it reinforce the status quo? but a new study suggests that this is only part of the story. startups, the authors observe, have two options when it comes to commercializing innovations.
in the second case, a startup can, for example, license its technology to a larger company, form a strategic alliance or agree to be acquired outright. if entrepreneurs typically choose one of these cooperative strategies, the balance of market power is likely to be preserved. the researchers surveyed 118 startups that had successfully commercialized a new technology. similarly, businesses with venture capital backing were more likely to cooperate because vcs help entrepreneurs identify and negotiate with the right product. finally, startups were significantly more likely to choose a cooperative strategy when managers believed that complementary assets, such as channel relationships or a well-known brand, were both critical to a product’s success and expensive to reproduce.
the commercialization strategy should not contain a lot of financial detail or “how to,” but it must be consumer focused and customer centered and not technology focused. a key issue in a commercialization strategy is to set the direction to explore and understand the market. chris zook in, beyond the core, addresses the concept of adjacency or the relationship of an opportunity to your core business and competencies. keep in mind that the targeted customer(s) may change as more marketing and voice of the customer data is collected. it is toward this customer that the business proposition will be initially oriented. it is important that the business proposition be benefit focused.
customers are not buying a product – they are buying what that product does for them. the business proposition must clearly state how that need will be satisfied. 1) overt benefit to the customer – what is the real benefit to be realized? 3) real reason to believe – what gives the customer confidence that we can deliver the product or service we are offering? given the information available, give a high-level assessment of the business potential for the three years after commercial launch. think about all the ways you can build upon and leverage your commercialization strategy and you might find your sales teams more engaged in the product launch, your customers understanding what’s in it for them, and ultimately your new product goals being achieved. a special thanks to lowell dye for his help in better understanding the product development process and in writing this post.
many life-style firms use licensing as the commercialization strategy of choice. with this strategy, the advanced technology firm specializes in technology development and limits its marketing and sales activities to the overtures it makes to potential licensees. for example, 10% penetration into a $2b market results in annual sales of $200 m. if a $2b market is growing at 10% a in the second case, a startup can, for example, license its technology to a larger company, form a, commercialization strategy framework, commercialization strategy framework, commercialization strategy for new product, product commercialization ppt, product commercialization process. for example, if a small bakery is known for its cinnamon rolls and has sold them with great success, it can commercialize its products by selling the packaged cinnamon rolls to local grocery stores, where others can buy the pastries and the bakery can increase its sales by multiple factors.
venture capital: this is where early stage investors (individuals or funds) invest in a new business which aims to the commercialization strategy should not contain a lot of for example, coke quenches thirst. check and improve your business plan for attracting investors or partners. browse consultancy examples ». contact, sbir commercialization plan example, product commercialization steps, importance of commercialization, reasons for commercialisation
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