Two Questions for Blue Ocean Case
1)The four different types of innovation are major, radical, incremental and strategic. We will look into each of these types one by one. Davila, Epstein, and Shelton explained that major innovation is that in which the habits and behaviors of the customers undergo significant change without affecting the major capabilities of the organization. For instance, the introduction of ATM machines in the decade of eighties brought convenience in the lives of customers as it saved them from the hassle of physically going to the bank and waiting in queues to get cash. Only the technological capabilities were updated keeping the traditional banking function the same as it is still in demand for various types of transactions. A type of innovation in which a significant change in behavior and consumption pattern of customers occurs while making the existing system obsolete we call it radical innovation. For instance, the launch of noise free vehicles and Windows 11 explain radical innovation. Incremental innovations are those where there takes place a slight up-gradation or change in the current capabilities for instance introduction of new features in MS Office explains incremental innovation. Lastly, strategic innovation is that which causes the competition to strengthen while keeping the change in behavior at a minimum. The best example of strategic innovation is the business model of SouthWest Airlines which is taking the lead in the competitive world.
2)Smart companies make use of fast second strategy to make their way into the competitive business arena. By making use of fast second strategy, the companies learn from the mistakes of pioneer and explore opportunities which the pioneer has not been able to do. Moreover, risks which are once made by pioneer companies can be avoided very conveniently. By making use of fast second strategy, companies can come up with the business model or product features which can regard the previously existing concepts or products obsolete and make way for their success.
Reference
Davila, Tony., Epstein, Marc.J. and Shelton, Robert. The Creative Enterprise: Strategy. London: Praeger, 2007. Print.
