Book a strategy call

Profit From An Effective Innovation Strategy

Discover a segment of undeserved customers who will pay more to get the job done better.

Download our new perspective on strategy white paper

Low-end disruption leads to low profits

While disruption at the low-end is popular, it is rarely profitable. Our innovation strategy consulting team has recognized that established companies rarely find it attractive to enter a business at the low-end, targeting and accepting lower margins and profits. Competing at the low-end also requires operational advantages in order to succeed over the long term. Most companies who are on the hook to generate new growth prefer to do so by pursuing high-margin businesses. Finding a high-margin, high-profit market may not be as hard as it sounds. You may not have to look beyond the markets you are already in.

Target the most profitable customers

By effectively targeting the most profitable customers in a given market, a company is able to win over and keep customers, take the lion’s share of profits, turn the screws on the competition – and then eliminate it – thereby setting the stage for long-term growth. This is the power of the profit share innovation strategy.

Innovation strategies work in markets that are highly underserved. It’s quite literally the opposite of the low-end disruption strategy made popular by Harvard Business School professor Clayton Christensen. Low-end disruption opened up new markets by offering highly overserved customers a product or service much, much more cheaply than any other option on the field, sacrificing only features that the overserved population didn’t value in the first place. The profit share strategy, by contrast, addresses a highly underserved population that’s willing to pay much, much more to get a job done significantly better than is currently possible. Our innovation strategy consulting team is expert at discovering these hidden opportunities for growth.

Let our innovation strategy consulting team lead the way

Stop guessing. Start innovating.
Book a Strategy call

Newsletter Signup

Privacy Policy
Cookie Policy
magnifiercrossmenuarrow-uparrow-downcross-circle