Management and Organizational Studies 2320A/B Study Guide - Market Saturation, Reverse Engineering, Voice Of The Customer

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New market offerings provide value to both firms and customers. Useful to think in degree of newness of a product on a continuum: new to the world to. Innovation is the process by which ideas are transformed into new products and services that will help firms grow. Firms can create and deliver value by satisfying the changing needs of their current and new customers or simply by keeping customers from getting bored with the current product or service offering. Sometimes, companies can identify problems and develop products that customers never knew they needed. Example: dove beauty bar extended their brand into hair, face, and skin-care. The longer a product exists in the marketplace, the more likely it is that the market will become saturated. Without new products or services, the value of the firm will ultimately decline. Firms with multiple products are better able to withstand external shocks, including changes in customer preferences or intensive competitive activity.