BU352 Chapter Notes - Chapter 8: Netflix, Liquid Oxygen, Outsourcing
Document Summary
Innovation: process by which ideas are transformed into new product and services that will help firms grow: without: can only continue to market to same customers, or try new market with same product. Market saturation: people always want something new, get customers excited over new look. Manage risk through diversity: broader portfolio helps diversify risk and enhance firm value than one product (special k, bars, crackers, cereal, etc) Fashion cycles: apparel, arts, books, software, movies generate almost all of their income in first year of release, people won"t keep buying same book, need new ones. Innovators: first on the block to get product, enjoy taking risks. Early adopters: excited to buy, but wait for others to try, promote to those below them. Early majority: don"t take risks, wait until bugs are sorted out, marketplace usually reached peak by this point. Late majority: last group to enter market, when they do it has achieved full potential.
